Within his freshly published autobiography, titled Ithaki, the former premier Tsipras pulls no punches while he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
According to Tsipras's account, Tsipras selected the unorthodox academic Yanis Varoufakis as the finance minister largely because of his international reputation and his very persuasive skills when it came to communicator.
“In reality, he was, actually, more of a star rather than an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had a personal agenda which involved advancing Varoufakis's books as well as experimenting with his economic models using Greece rather than genuinely advocating the country's financial survival.
He noted that the negotiations to stave off insolvency were “not only a way of achieving a better deal for the country. They were an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece came dangerously on the brink of exiting the eurozone.
At stake lay not only the country's future and the severe cutbacks required in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the punitive conditions were subjected to a popular referendum, a move which plunged the EU into a further existential crisis.
Even though the vote was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome then agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author concludes how his former ally had proved himself “unsuitable for a deal demanding complex and delicate management.”
He also wrote how Varoufakis's confrontational style made him more and more alone among peers, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This account of events has provoked anger and shock among certain groups, while the former minister has kept a conspicuous quiet on the matter.
