In a newly released autobiography, called Ithaki, the former prime minister Tsipras does not hold back while he reflects on that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's version, Tsipras selected the maverick economist Yanis Varoufakis to be the treasury head primarily because of his international reputation along with his very persuasive skills as a communicator.
“He was, truthfully, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis possessed his own agenda which included promoting Varoufakis's books as well as experimenting with his own theories on Greece rather than truly fighting for its financial survival.
He explained how the negotiations to avoid insolvency became “not only a method of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Talks
Amid volatile negotiations, the country found itself perilously on the brink of exiting the eurozone.
At stake was both the country's destiny but also those harsh austerity measures required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action which threw Europe into a further existential crisis.
Even though the vote was carried resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
