In a freshly published memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's version, Tsipras appointed the maverick economist Yanis Varoufakis as the treasury head largely due to the latter's international reputation along with his highly compelling abilities as a speaker.
“In reality, he was, actually, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader claims that his finance chief had his own motives that included advancing Varoufakis's books as well as testing out his theories on Greece rather than genuinely fighting for its economic stability.
He explained how the talks to prevent insolvency were “not just a method of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to exiting the eurozone.
At stake was not only Greece's destiny but also those severe austerity measures demanded in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, the punitive bailout terms were subjected to a public vote, an action that plunged the EU into a deeper crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and distributing coupons to retirees, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational approach made him more and more alone with colleagues, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The account of events has provoked anger along with shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
