In a newly released memoir, titled Ithaki, the former leader Tsipras does not hold back while he revisits that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's version, Tsipras chose that maverick academic Yanis Varoufakis as his treasury head largely because of his international reputation and Varoufakis's very persuasive skills as a speaker.
“He was, truthfully, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed a personal motives which included advancing Varoufakis's publications and testing out his economic models on the nation rather than truly fighting for the country's financial survival.
He explained how the discussions to avoid insolvency were “not only a way to secure improved terms for Greece. They were an experiment, a monumental chance to prove the validity of his theories.”
High-Stakes Talks
During rollercoaster negotiations, the country came perilously close to leaving the single currency area.
At stake was not only Greece's future but also the severe cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, an action that plunged Europe into further crisis of identity.
Although the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to reject its outcome and agree to a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who graced the front pages of publications globally … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency as well as distributing coupons to pensioners, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, the author asserts that his former ally had proved himself “unfit for a deal that required intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
