In a newly released autobiography, titled Ithaki, the former leader Tsipras pulls no punches while he examines that turbulent era of Greece's financial crisis.
An Unconventional Choice
In Tsipras's account, Tsipras appointed the unorthodox academic Yanis Varoufakis to be the finance minister mainly because of the latter's international reputation and his highly compelling abilities as a communicator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief had his own motives that involved promoting Varoufakis's publications and testing out his own economic models using the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote that those talks to stave off insolvency became “not just a way to secure improved terms for Greece. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
At stake was both the country's destiny and those severe austerity measures demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, a move that threw Europe into deeper existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras had little option to ignore the result then agree to a rescue deal with creditors that proved to be even harsher.
Breaking Point
The ex-PM 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 appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised it was game over questioning him: “Is this for real?”
Lasting Rebuke
In the book, the author asserts that Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also claimed how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
