Within his recently unveiled autobiography, named Ithaki, the ex- premier Tsipras pulls no punches while he examines that turbulent era during Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's version, he chose that maverick academic Yanis Varoufakis as his treasury head primarily because of the latter's international reputation and his highly compelling abilities as a speaker.
“He was, actually, more like a star and less of an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis possessed a personal agenda that involved advancing his publications and testing out his game theories using Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote how the discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid tense discussions, Greece came perilously on the brink of leaving the eurozone.
On the line lay both the country's destiny but also the severe austerity measures demanded in exchange for bailout funds from international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, a move that threw the EU into a further existential crisis.
Although the vote was won decisively by voters who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package from creditors which proved to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, the leader knew that it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how his former ally had proved himself “unsuitable for a deal that required complex and delicate management.”
He also claimed that Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
