Within his freshly published personal account, called Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that turbulent period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, he selected the maverick academic Yanis Varoufakis as his treasury head largely because of the latter's global profile and his very persuasive skills when it came to public orator.
“He was, in reality, more like a star and less of an economist,” recalled Tsipras.
Clashing Priorities
The former leader claims that his finance chief had a personal motives which involved advancing Varoufakis's books and testing out his theories using Greece instead of truly advocating the country's economic stability.
He explained that the discussions to stave off bankruptcy were “not only a way of achieving improved terms for the country. They were a test, an historic chance to prove the validity of his theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came perilously close to leaving the eurozone.
At stake was both the country's future but also the harsh austerity measures required in exchange for financial aid by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Even though the referendum was carried decisively by those who opposed austerity, Tsipras had little option but to ignore the result and agree to a bailout package from foreign lenders that turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal that required complex and delicate management.”
Tsipras further claimed how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
