Within his newly released autobiography, called Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that chaotic period during Greece's debt drama.
An Unconventional Choice
According to Tsipras's version, he selected the maverick economist Yanis Varoufakis to be his treasury head largely due to the latter's international reputation and Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader claims how his finance chief had a personal motives that included advancing his books as well as experimenting with his own theories using Greece instead of genuinely advocating the country's economic stability.
He wrote that those discussions to stave off bankruptcy became “not only a method of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came perilously close to exiting the eurozone.
At stake lay not only Greece's future but also those harsh austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, an action which plunged the EU into further crisis of identity.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option to ignore the result and agree to a rescue deal with creditors which proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, the author asserts that his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
Tsipras further wrote that Varoufakis's confrontational approach made him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
