In a newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back while he examines that chaotic period during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's version, he selected the maverick academic Yanis Varoufakis as the treasury head largely because of the latter's international reputation and Varoufakis's very persuasive abilities when it came to communicator.
“He was, in reality, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis possessed his own agenda that included promoting his publications and experimenting with his game theories using Greece instead of genuinely advocating its economic stability.
He explained how the discussions to prevent insolvency became “not only a method to secure a better deal for Greece. They became a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was both the country's destiny but also those harsh austerity policies required in exchange for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure funds from other sources, including a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, those punitive conditions were put to a public vote, a move that plunged the EU into deeper crisis of identity.
Although the referendum was carried decisively by those who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When the minister proposed a backup strategy that included establishing a secondary currency and distributing coupons to pensioners, the leader said he realised that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the book, the author concludes that Varoufakis had proved himself “unsuitable for a deal demanding complex and delicate handling.”
He further wrote how his confrontational approach made him more and more alone among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with fury along with shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
