In a recently unveiled autobiography, named Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Choice
In Tsipras's account, Tsipras appointed the maverick economist Yanis Varoufakis to be the treasury head mainly due to his global profile along with his very persuasive skills as a speaker.
“He was, in reality, more like a star rather than an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader claims how his finance chief had a personal motives that included advancing his publications and testing out his economic models using Greece rather than genuinely advocating the country's economic stability.
He noted how those negotiations to stave off bankruptcy became “not only a way to secure improved terms for Greece. They were an experiment, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, the country came perilously close to exiting the single currency area.
At stake was not only Greece's future and those severe austerity policies required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were put to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to reject its outcome then negotiate a bailout package with creditors which proved to be more severe.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing coupons to pensioners, Tsipras knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes that his former ally had proved himself to be “unfit for a deal demanding complex and sensitive handling.”
He further claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
