In a recently unveiled memoir, called Ithaki, the former premier Tsipras pulls no punches as he reflects on that turbulent era of Greece's financial crisis.
An Unconventional Choice
As per Tsipras's account, he selected the maverick academic Yanis Varoufakis as his treasury head mainly due to his international reputation along with his highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a star and less of an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras suggests that his finance chief had a personal motives which involved advancing his books and testing out his economic models using Greece rather than truly advocating the country's economic stability.
Tsipras wrote that the negotiations to prevent insolvency were “not just a method to secure a better deal for the country. They were a test, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself perilously on the brink of exiting the eurozone.
On the line was both Greece's destiny but also those punishing austerity measures required in return for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the excoriating conditions were put to a popular referendum, an action which plunged Europe into a deeper crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced but to reject its outcome and agree to a rescue deal from foreign lenders that proved to be more severe.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally had proved himself to be “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also wrote that his aggressive style left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, while the former minister has kept a conspicuous quiet on the matter.
