In a freshly published autobiography, named Ithaki, the former premier Tsipras spares no criticism as he examines that chaotic era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, he selected that unorthodox economist Yanis Varoufakis as the treasury head largely due to the latter's global profile along with his highly compelling skills when it came to communicator.
“In reality, he was, actually, more of a star rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges how Varoufakis had a personal agenda that involved promoting Varoufakis's books and testing out his economic models on Greece rather than truly advocating its financial survival.
Tsipras noted how those negotiations to stave off insolvency were “not just a method of achieving improved terms for Greece. They were an experiment, an historic chance to prove the truth of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country came perilously close to exiting the eurozone.
At stake lay both the country's future but also the severe austerity policies demanded in return for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, an action that plunged the EU into a further crisis of identity.
Even though the referendum was carried decisively by those against the cuts, Tsipras was forced but to reject its outcome then agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying his new role.”
After the minister proposed a backup strategy that included creating a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the book, the author asserts how his former ally demonstrated himself “unsuitable for a deal that required intricate and sensitive handling.”
He further claimed how his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were advocating a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
