In a newly released autobiography, called Ithaki, the ex- prime minister Tsipras does not hold back while he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
According to Tsipras's recollections, he chose that maverick economist Yanis Varoufakis to be his treasury head largely due to the latter's international reputation along with his “extremely attractive” skills as a speaker.
“In reality, he was, actually, more like a star and less of an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief possessed a personal agenda that involved advancing his publications as well as testing out his own theories using Greece rather than genuinely fighting for its financial survival.
Tsipras wrote how those negotiations to stave off insolvency became “not only a way to secure improved terms for the country. They became a test, an historic chance to prove the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to exiting the single currency area.
On the line lay not only Greece's destiny but also those severe austerity policies demanded in return for bailout funds by international creditors.
Failed Alternatives
Efforts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, an action that threw the EU into a deeper crisis of identity.
Even though the vote was carried resoundingly by those who opposed the cuts, the prime minister had little option but to ignore the result then negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving establishing a parallel currency and distributing vouchers to retirees, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
He further wrote how his aggressive approach left him more and more alone with colleagues, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury along with shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
