Within his newly released personal account, named Ithaki, the ex- leader Tsipras pulls no punches as he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, he selected that unorthodox academic Yanis Varoufakis to be the treasury head largely due to the latter's global profile and Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, actually, more like a celebrity rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had his own motives which included promoting Varoufakis's books and testing out his own theories using Greece rather than truly fighting for the country's financial survival.
He noted how those discussions to prevent insolvency were “not only a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to prove the truth of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself perilously close to exiting the single currency area.
At stake lay not only Greece's future but also those punishing austerity measures required in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure funds elsewhere, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action that threw the EU into a deeper crisis of identity.
Although the referendum was won decisively by those who opposed austerity, the prime minister was forced to reject its outcome and agree to a bailout package with creditors which turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and issuing coupons to retirees, the leader knew it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and delicate handling.”
He also wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
This account of events has provoked fury along with shock in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
