Within his newly released autobiography, named Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that chaotic period during Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's account, he appointed that maverick academic Yanis Varoufakis as his treasury head mainly because of his international reputation along with his very persuasive skills as a speaker.
“He was, in reality, more of a celebrity and less of an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief possessed his own agenda which included promoting Varoufakis's books as well as testing out his own theories on Greece rather than truly advocating its economic stability.
He noted that those negotiations to stave off insolvency were “not only a way of achieving improved terms for the country. They became a test, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece came perilously on the brink of leaving the single currency area.
At stake lay both the country's future but also the punishing austerity policies demanded in return for rescue loans from foreign lenders.
Failed Options
Efforts to find funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were put to a public vote, a move which threw the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by those against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal with creditors that proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to pensioners, the leader knew it was game over questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis had proved himself to be “unfit for an agreement that required complex and sensitive handling.”
He also wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger and shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
