In a freshly published autobiography, called Ithaki, the ex- premier Tsipras pulls no punches while he reflects on that chaotic period of Greece's debt drama.
An Unconventional Choice
According to Tsipras's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis as the finance minister largely due to the latter's international reputation along with Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal motives which included advancing Varoufakis's publications as well as testing out his own theories on Greece instead of truly fighting for its financial survival.
Tsipras noted how the negotiations to prevent bankruptcy were “not only a way to secure a better deal for Greece. They became an experiment, an historic chance to prove the validity of his ideas.”
High-Stakes Negotiations
Amid volatile discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake lay not only Greece's future but also those severe austerity policies required in return for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action which threw Europe into a deeper crisis of identity.
Although the referendum was won decisively by voters who opposed the cuts, Tsipras had little option but to ignore the result and agree to a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how his former ally had proved himself to be “unfit for a deal demanding complex and delicate management.”
Tsipras also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
The account of events has provoked fury along with shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
