Within his freshly published autobiography, named Ithaki, the former premier Tsipras does not hold back while he revisits that chaotic era of Greece's debt drama.
A Controversial Appointment
As per Tsipras's recollections, he chose the unorthodox academic Yanis Varoufakis as the treasury head primarily due to the latter's worldwide fame and Varoufakis's very persuasive skills when it came to communicator.
“He was, actually, more like a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
The former leader alleges how his finance chief possessed a personal motives which involved advancing his publications as well as experimenting with his own game theories on the nation instead of genuinely advocating its financial survival.
He explained that those negotiations to avoid insolvency became “not only a method to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense discussions, Greece came dangerously close to exiting the single currency area.
On the line was both the country's destiny but also the harsh austerity measures required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that plunged Europe into further crisis of identity.
Even though the referendum was won decisively by voters against austerity, Tsipras had little option to ignore the result and negotiate a rescue deal from creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency and issuing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also wrote that his confrontational style left him more and more alone among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
