Within his newly released memoir, named Ithaki, the former prime minister Tsipras pulls no punches as he revisits the turbulent era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's version, he selected that maverick economist Yanis Varoufakis to be the finance minister largely because of his worldwide fame and his highly compelling abilities as a communicator.
“He was, actually, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims how Varoufakis possessed a personal motives that involved promoting Varoufakis's publications as well as testing out his game theories on Greece instead of genuinely advocating its financial survival.
Tsipras noted how those discussions to avoid bankruptcy became “not only a way of achieving a better deal for the country. They were a test, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, the country came perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future but also those punishing austerity measures required in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those harsh conditions were put to a popular referendum, a move which plunged the EU into a deeper crisis of identity.
Although the referendum was won resoundingly by those against the cuts, the prime minister had little option to reject its outcome then agree to a rescue deal with creditors that turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis had proved himself “unfit for a deal demanding complex and sensitive handling.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were pushing for Grexit.
The account of events has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
