In a recently unveiled autobiography, titled Ithaki, the ex- premier Tsipras spares no criticism while he examines that turbulent era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, Tsipras chose the unorthodox economist Yanis Varoufakis to be the finance minister mainly due to the latter's global profile and his very persuasive abilities when it came to communicator.
“In reality, he was, truthfully, more of a star rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had a personal motives that involved advancing Varoufakis's books as well as testing out his game theories on Greece instead of genuinely fighting for its financial survival.
He explained how those negotiations to avoid bankruptcy became “not just a way to secure improved terms for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously close to exiting the single currency area.
On the line was both Greece's destiny but also the punishing cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive conditions were subjected to a popular referendum, an action which threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome and negotiate a bailout package with creditors that turned out to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to pensioners, the leader knew it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement that required complex and sensitive management.”
Tsipras also wrote that his confrontational style left him more and more alone among peers, endangered the country, and helped hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with fury and shock in some quarters, while the former minister has so far maintained a deafening silence on the matter.
