In a newly released personal account, titled Ithaki, the former leader Tsipras pulls no punches while he examines that turbulent era during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's version, he selected the maverick economist Yanis Varoufakis as his treasury head primarily because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills when it came to speaker.
“He was, in reality, more of a star rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader alleges that Varoufakis had his own motives that involved advancing his publications and testing out his theories on Greece rather than genuinely fighting for its financial survival.
He explained that those talks to prevent insolvency became “not only a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself dangerously close to exiting the eurozone.
At stake was both Greece's destiny but also the harsh austerity policies required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, an action which plunged Europe into further crisis of identity.
Although the referendum was won resoundingly by voters against austerity, the prime minister was forced to reject its outcome and negotiate a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the covers of magazines globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He also claimed how Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
