Within his newly released autobiography, titled Ithaki, the ex- leader Tsipras does not hold back while he examines that chaotic era during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, he chose that unorthodox academic Yanis Varoufakis to be the finance minister mainly because of the latter's international reputation along with Varoufakis's very persuasive skills as a public orator.
“He was, truthfully, more like a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had his own motives which involved advancing his publications and experimenting with his theories on Greece rather than truly advocating the country's financial survival.
He explained how the talks to avoid bankruptcy were “not just a method to secure improved terms for the country. They became an experiment, an historic chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
During volatile discussions, Greece came perilously on the brink of exiting the single currency area.
At stake lay both Greece's future and those punishing austerity measures demanded in return for bailout funds from international creditors.
Failed Options
Efforts to find financing from other sources, including an urgent plea to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were put to a public vote, a move that plunged the EU into a further existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option to ignore the result and negotiate a bailout package from foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving creating a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive management.”
He also claimed that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for Grexit.
The retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
