In a recently unveiled autobiography, titled Ithaki, the ex- leader Tsipras pulls no punches as he revisits that chaotic era of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's recollections, Tsipras chose that maverick academic Yanis Varoufakis to be the finance minister largely due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, actually, more of a personality and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief had his own motives which included advancing his books as well as testing out his economic models on Greece instead of truly advocating its economic stability.
Tsipras wrote that those negotiations to avoid bankruptcy became “not only a way to secure a better deal for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, Greece came perilously on the brink of leaving the single currency area.
At stake was both the country's future and the harsh cutbacks required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, the harsh conditions were subjected to a public vote, a move that threw the EU into further existential crisis.
Although the vote was carried decisively by voters against the cuts, the prime minister was forced but to ignore the result then negotiate a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the front pages of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan that included creating a parallel currency and issuing vouchers to pensioners, the leader knew that it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally demonstrated himself “unsuitable for an agreement that required intricate and sensitive handling.”
He further claimed that his aggressive style left him more and more alone among peers, endangered the country, while assisted hardliners who were pushing for Grexit.
The retelling of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
