Within his recently unveiled personal account, titled Ithaki, the former leader Tsipras pulls no punches as he examines the turbulent era during Greece's financial crisis.
A Controversial Choice
In Tsipras's recollections, Tsipras selected the unorthodox academic Yanis Varoufakis to be the finance minister mainly because of the latter's global profile and Varoufakis's very persuasive skills when it came to communicator.
“He was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed his own agenda that involved advancing Varoufakis's publications as well as testing out his own theories using Greece instead of truly advocating its economic stability.
Tsipras explained how the talks to avoid bankruptcy were “not just a way of achieving a better deal for Greece. They became a test, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came perilously close to exiting the single currency area.
At stake lay not only Greece's destiny and the punishing austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were subjected to a public vote, a move that threw Europe into deeper existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras had little option to reject its outcome and agree to a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate management.”
He also wrote that his confrontational style left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
The retelling of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
