In a recently unveiled autobiography, titled Ithaki, the former prime minister Tsipras does not hold back as he revisits that turbulent period during Greece's economic turmoil.
A Controversial Choice
In Tsipras's recollections, he chose the unorthodox academic Yanis Varoufakis to be the treasury head mainly due to his international reputation and Varoufakis's highly compelling skills as a communicator.
“In reality, he was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had his own motives that included advancing Varoufakis's books as well as testing out his own game theories using the nation instead of genuinely advocating the country's financial survival.
Tsipras explained how those negotiations to stave off insolvency were “not only a method to secure improved terms for Greece. They became a test, a monumental opportunity to prove the truth of his ideas.”
Critical Talks
Amid rollercoaster negotiations, the country found itself dangerously close to leaving the single currency area.
On the line was both the country's destiny and those punishing austerity policies required in return for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, a move that plunged the EU into a further existential crisis.
Although the referendum was won decisively by voters against the cuts, the prime minister was forced to ignore the result then negotiate a rescue deal from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
After the minister outlined a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, the leader said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, the author concludes how Varoufakis had proved himself “unfit for a deal that required intricate and delicate management.”
Tsipras further claimed that Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
The account of history has been met with anger and shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
