Within his newly released autobiography, called Ithaki, the former premier Tsipras spares no criticism while he revisits that chaotic era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's account, Tsipras appointed the maverick economist Yanis Varoufakis to be his treasury head largely due to his international reputation along with Varoufakis's highly compelling abilities as a speaker.
“He was, actually, more like a personality and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal agenda that involved advancing Varoufakis's books as well as experimenting with his own game theories on Greece instead of truly advocating its financial survival.
He explained how those discussions to avoid insolvency became “not only a method to secure improved terms for the country. They became an experiment, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the eurozone.
At stake was not only the country's future but also the severe austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, an action that threw Europe into a deeper existential crisis.
Although the referendum was won resoundingly by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal with creditors which turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras knew that it was game over questioning him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras also claimed how Varoufakis's confrontational style left him more and more alone with colleagues, endangered the country, and assisted hawks that were advocating Grexit.
The account of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
