In a recently unveiled personal account, called Ithaki, the former leader Tsipras pulls no punches while he examines that chaotic era during Greece's debt drama.
A Controversial Appointment
In Tsipras's version, he appointed that maverick academic Yanis Varoufakis to be his treasury head largely due to the latter's global profile and his “extremely attractive” abilities as a public orator.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief had his own motives which involved promoting his publications and testing out his economic models using Greece rather than genuinely fighting for its economic stability.
He wrote how those negotiations to prevent insolvency became “not only a method to secure a better deal for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, the country found itself dangerously close to leaving the single currency area.
At stake lay not only Greece's destiny and those harsh austerity policies demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, an action which threw the EU into a further existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced but to ignore the result and agree to a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing coupons to retirees, the leader knew it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally had proved himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating Grexit.
This account of history has been met with anger along with shock among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
