In a freshly published personal account, titled Ithaki, the former leader Tsipras pulls no punches as he examines that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras appointed the maverick economist Yanis Varoufakis to be the treasury head mainly because of the latter's international reputation and Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, truthfully, more like a star and less of an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis had his own agenda which involved advancing Varoufakis's publications and testing out his economic models on Greece rather than genuinely advocating the country's economic stability.
He explained how those negotiations to prevent bankruptcy were “not just a method to secure improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake was not only the country's destiny and those harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those excoriating bailout terms were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister had little option but to ignore the result and negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, the leader said he realised it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts that Varoufakis had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hawks who were advocating Grexit.
The retelling of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
