In a newly released memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits the chaotic period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he appointed the unorthodox economist Yanis Varoufakis as his treasury head mainly because of the latter's global profile and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more of a personality rather than an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief had a personal agenda that included advancing Varoufakis's books and experimenting with his economic models using Greece rather than genuinely advocating its economic stability.
Tsipras explained that the talks to prevent insolvency were “not just a way of achieving a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During tense discussions, the country came dangerously on the brink of leaving the single currency area.
At stake was both the country's destiny but also the punishing cutbacks demanded in exchange for bailout funds from foreign lenders.
Failed Options
Attempts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those punitive bailout terms were put to a public vote, an action that threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by those against austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors which turned out to be more severe.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to pensioners, the leader knew it was game over questioning him: “Can you be serious?”
Lasting Rebuke
In the book, the author concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive handling.”
He further claimed that Varoufakis's confrontational style made him more and more alone among peers, endangered the country, and helped hardliners who were advocating Grexit.
This account of events has provoked fury along with shock in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
