In a freshly published personal account, called Ithaki, the former leader Tsipras pulls no punches as he revisits the chaotic period during Greece's debt drama.
An Unconventional Choice
As per Tsipras's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be the finance minister mainly because of the latter's global profile along with his highly compelling skills as a public orator.
“In reality, he was, in reality, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how his finance chief had his own motives that included advancing his publications and experimenting with his own theories using Greece rather than genuinely fighting for the country's economic stability.
Tsipras noted that the discussions to avoid bankruptcy became “not only a way to secure improved terms for the country. They were a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came dangerously on the brink of exiting the single currency area.
On the line lay not only Greece's destiny but also those punishing cutbacks required in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure funds from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the harsh conditions were subjected to a public vote, an action which threw the EU into deeper existential crisis.
Although the vote was won decisively by voters against austerity, Tsipras was forced but to ignore the result then agree to a rescue deal from creditors which proved to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and issuing vouchers to retirees, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote that his aggressive approach left him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
The account of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
