In a newly released personal account, named Ithaki, the former leader Tsipras does not hold back while he examines that chaotic period during Greece's debt drama.
A Controversial Appointment
In Tsipras's account, he selected that unorthodox academic Yanis Varoufakis to be the treasury head primarily because of his worldwide fame and his “extremely attractive” skills as a communicator.
“He was, truthfully, more like a star rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own motives that involved promoting Varoufakis's publications as well as experimenting with his own theories on Greece instead of truly fighting for its economic stability.
Tsipras wrote that the talks to stave off insolvency were “not just a method to secure a better deal for Greece. They became an experiment, an historic chance to prove the truth of his theories.”
High-Stakes Talks
During volatile discussions, Greece found itself dangerously on the brink of leaving the single currency area.
On the line lay not only the country's future and those punishing austerity measures required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as an urgent plea 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 Tsipras in Moscow.
Public Vote and Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, a move that threw Europe into a deeper existential crisis.
Although the vote was won decisively by voters who opposed the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of magazines globally … it seemed he relished his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, the author asserts how his former ally demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
He further wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
