Within his newly released autobiography, called Ithaki, the ex- premier Tsipras does not hold back as he examines that turbulent period during Greece's debt drama.
An Unconventional Appointment
As per Tsipras's recollections, he selected that unorthodox economist Yanis Varoufakis as his treasury head largely because of the latter's global profile along with his highly compelling abilities when it came to speaker.
“He was, truthfully, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief had a personal motives which included advancing his publications as well as experimenting with his own economic models on Greece instead of truly advocating its economic stability.
He noted how those talks to avoid bankruptcy became “not just a method to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, the country came perilously on the brink of leaving the eurozone.
On the line was not only the country's future and those severe austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those punitive conditions were put to a public vote, a move that threw the EU into a deeper crisis of identity.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal from foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, the author asserts how Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
