Within his recently unveiled personal account, named Ithaki, the former prime minister Tsipras pulls no punches as he revisits that turbulent era during Greece's debt drama.
A Controversial Appointment
According to Tsipras's account, Tsipras appointed the maverick academic Yanis Varoufakis to be his treasury head mainly because of the latter's international reputation and Varoufakis's very persuasive skills when it came to public orator.
“He was, in reality, more like a celebrity rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis possessed a personal motives which involved promoting his publications and experimenting with his own economic models using Greece instead of truly advocating its financial survival.
Tsipras noted that those talks to prevent insolvency were “not only a way of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line was not only Greece's future and the punishing austerity policies demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate plea to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move that threw the EU into further existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option but to ignore the result then agree to a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and distributing coupons to retirees, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
He further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
This account of events has been met with fury along with shock in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
