In a newly released memoir, named Ithaki, the former prime minister Tsipras pulls no punches while he examines the turbulent period during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, Tsipras appointed that unorthodox academic Yanis Varoufakis to be his treasury head mainly because of the latter's international reputation and Varoufakis's highly compelling abilities when it came to speaker.
“In reality, he was, actually, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader alleges how Varoufakis had his own motives which involved advancing Varoufakis's publications as well as experimenting with his own economic models on the nation instead of genuinely fighting for its financial survival.
He explained how those talks to stave off bankruptcy became “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid tense discussions, Greece found itself dangerously close to leaving the eurozone.
On the line was both Greece's destiny and those severe austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a public vote, a move which threw Europe into a further crisis of identity.
Even though the referendum was carried decisively by those against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal with creditors which turned out to be tougher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency as well as distributing vouchers to retirees, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He also wrote that his confrontational approach left him more and more alone 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 and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
