Within his freshly published memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he examines that turbulent period of Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, he selected the unorthodox academic Yanis Varoufakis to be his treasury head mainly due to his international reputation along with Varoufakis's very persuasive skills as a communicator.
“He was, truthfully, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had his own motives which included advancing Varoufakis's books and experimenting with his own game theories on the nation instead of genuinely advocating its financial survival.
Tsipras noted how the negotiations to stave off insolvency were “not only a method of achieving a better deal for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country found itself perilously on the brink of leaving the eurozone.
At stake was not only Greece's destiny but also those severe austerity measures demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were put to a public vote, a move which threw Europe into a further existential crisis.
Even though the vote was won resoundingly by voters against the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal with foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency and issuing coupons to pensioners, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, the author concludes that his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”
He also claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
This retelling of events has provoked fury and shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
