In a recently unveiled memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he examines that chaotic era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, Tsipras chose the maverick economist Yanis Varoufakis to be the finance minister largely because of the latter's worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how Varoufakis had his own agenda which included advancing Varoufakis's books and testing out his own economic models using the nation rather than genuinely advocating its economic stability.
He wrote how those discussions to avoid insolvency were “not only a way of achieving improved terms for the country. They were an experiment, an historic chance to prove the validity of his economic theories.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to exiting the eurozone.
At stake was both Greece's future but also those punishing austerity policies required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the punitive bailout terms were put to a public vote, an action that threw Europe into further crisis of identity.
Even though the vote was carried decisively by voters against austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as distributing vouchers to pensioners, the leader knew that it was the end questioning him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras asserts that his former ally had proved himself to be “unfit for an agreement that required intricate and sensitive management.”
He also wrote how his confrontational style made him more and more alone with colleagues, endangered the country, and helped hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked anger and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
