In a freshly published autobiography, named Ithaki, the former leader Tsipras pulls no punches as he revisits that chaotic period of Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, he chose the unorthodox economist Yanis Varoufakis to be the treasury head largely due to his worldwide fame and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis possessed a personal motives that involved advancing Varoufakis's books as well as testing out his own economic models using Greece instead of truly advocating the country's financial survival.
Tsipras explained that the discussions to prevent insolvency became “not just a method of achieving a better deal for the country. They were a test, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
During volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
At stake was both Greece's future but also those severe austerity policies demanded in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, an action that threw the EU into a further existential crisis.
Although the referendum was won decisively by voters against the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy involving creating a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was the end questioning him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He further claimed that his aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were pushing for a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, while the former minister has maintained a deafening silence on the matter.
