In a newly released autobiography, named Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that chaotic era during Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, he selected that unorthodox academic Yanis Varoufakis to be his finance minister mainly because of the latter's worldwide fame along with his highly compelling abilities as a public orator.
“He was, actually, more like a celebrity rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief had his own motives that included promoting Varoufakis's publications as well as experimenting with his economic models using the nation rather than genuinely fighting for its financial survival.
He wrote how those discussions to stave off insolvency became “not just a method of achieving a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid rollercoaster discussions, Greece came perilously close to leaving the eurozone.
On the line was both Greece's destiny and the severe austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, the excoriating conditions were put to a public vote, an action which threw Europe into a further existential crisis.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option but to reject its outcome then agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who drew media attention, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unfit for an agreement that required intricate and sensitive management.”
He also wrote how Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of history has provoked fury and shock among certain groups, whereas the former minister has kept a deafening silence regarding these claims.
