In a newly released memoir, named Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the chaotic era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, Tsipras selected that maverick academic Yanis Varoufakis as the treasury head mainly due to the latter's worldwide fame along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a star rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges that Varoufakis possessed his own motives that involved promoting Varoufakis's publications and experimenting with his own game theories using Greece rather than genuinely fighting for its financial survival.
Tsipras noted that the discussions to avoid insolvency became “not only a method of achieving a better deal for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Negotiations
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake lay not only the country's destiny but also the punishing cutbacks demanded in return for financial aid from international creditors.
Failed Options
Attempts to find funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was won decisively by voters against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who attracted media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a secondary currency as well as issuing coupons to pensioners, the leader said he realised that it was the end and asked him: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This retelling of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
