In a newly released autobiography, called Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits the turbulent period of Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, he appointed the unorthodox academic Yanis Varoufakis as his finance minister mainly because of the latter's global profile and Varoufakis's very persuasive skills when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” stated Tsipras.
Conflicting Agendas
The former leader claims that Varoufakis possessed a personal agenda which included advancing Varoufakis's books and experimenting with his own economic models on the nation rather than genuinely advocating the country's economic stability.
He explained how those negotiations to prevent insolvency were “not just a way of achieving a better deal for the country. They were a test, an historic chance to demonstrate the validity of his ideas.”
Critical Negotiations
During rollercoaster discussions, Greece came perilously on the brink of exiting the eurozone.
At stake lay both Greece's destiny but also those severe austerity policies required in return for financial aid from foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek bonds, went unanswered.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were put to a popular referendum, an action which plunged the EU into a further crisis of identity.
Even though the referendum was carried decisively by voters who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal from creditors which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of publications globally … it seemed he relished his new role.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing vouchers to retirees, the leader knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
This retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
