In a newly released autobiography, titled Ithaki, the former prime minister Tsipras does not hold back as he examines the turbulent period during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, he appointed that maverick academic Yanis Varoufakis as the finance minister mainly due to the latter's global profile and Varoufakis's highly compelling skills when it came to speaker.
“He was, actually, more of a personality rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had his own motives which included promoting his publications as well as testing out his game theories on the nation instead of genuinely fighting for the country's economic stability.
Tsipras explained how the discussions to prevent bankruptcy became “not only a way of achieving a better deal for the country. They were an experiment, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Talks
During tense negotiations, Greece came perilously on the brink of exiting the eurozone.
On the line lay both Greece's destiny and the harsh austerity policies required in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, an action which threw the EU into further existential crisis.
Even though the vote was carried resoundingly by those against austerity, Tsipras had little option to ignore the result and agree to a rescue deal from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who graced the front pages of magazines the world over … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts that his former ally had proved himself “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras further claimed how Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, while the former minister has kept a conspicuous quiet on the matter.
