Within his newly released personal account, titled Ithaki, the ex- premier Tsipras does not hold back as he reflects on that turbulent era of Greece's debt drama.
A Controversial Choice
According to Tsipras's version, he selected the maverick economist Yanis Varoufakis as his treasury head mainly because of his international reputation and his very persuasive abilities when it came to communicator.
“He was, truthfully, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief had his own agenda which included advancing his books and testing out his own theories on the nation rather than genuinely advocating its economic stability.
He wrote how those negotiations to avoid insolvency became “not just a way of achieving a better deal for the country. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense discussions, the country came perilously on the brink of exiting the eurozone.
On the line was not only the country's future and the severe austerity policies required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, the harsh conditions were put to a popular referendum, an action that threw Europe into a deeper crisis of identity.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome then agree to a rescue deal with creditors that proved to be even harsher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a parallel currency as well as distributing vouchers to pensioners, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, the author asserts that Varoufakis had proved himself “unfit for an agreement that required intricate and delicate management.”
He further wrote that his aggressive style made him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of events has provoked anger and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
