In a newly released autobiography, titled Ithaki, the ex- premier Tsipras pulls no punches as he examines that chaotic period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's version, Tsipras selected that maverick economist Yanis Varoufakis as his treasury head largely due to his worldwide fame and his very persuasive abilities when it came to public orator.
“He was, actually, more like a celebrity rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that his finance chief had his own agenda which included promoting Varoufakis's books as well as testing out his economic models using the nation rather than truly fighting for its financial survival.
Tsipras explained that the negotiations to stave off insolvency were “not only a method of achieving improved terms for the country. They were an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to leaving the single currency area.
On the line lay both the country's destiny but also the harsh austerity measures required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, those harsh bailout terms were subjected to a popular referendum, a move that threw Europe into deeper crisis of identity.
Although the vote was carried decisively by voters against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew media attention, who graced the covers of magazines globally … it seemed he relished his new role.”
When the minister proposed a backup strategy involving creating a secondary currency and distributing coupons to pensioners, the leader knew that it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
He also claimed that his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were pushing for Grexit.
The account of events has provoked anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
