In a recently unveiled memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that turbulent period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, he appointed that maverick academic Yanis Varoufakis to be the finance minister largely because of the latter's global profile along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis had his own motives which involved promoting his publications and experimenting with his economic models on Greece rather than genuinely advocating its financial survival.
Tsipras noted how the discussions to avoid insolvency were “not only a way to secure a better deal for the country. They became an experiment, an historic chance to prove the truth of his ideas.”
Critical Negotiations
During volatile negotiations, the country found itself dangerously close to leaving the single currency area.
At stake lay not only Greece's future and those severe austerity policies required in return for financial aid by international creditors.
Failed Options
Efforts to secure financing elsewhere, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those punitive conditions were put to a public vote, a move that plunged Europe into a deeper existential crisis.
Although the vote was carried resoundingly by those against the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras asserts that his former ally demonstrated himself to be “unsuitable for a deal that required complex and delicate handling.”
Tsipras further wrote how his aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hawks that were advocating a Greek exit from the euro.
The retelling of history has provoked anger and shock in some quarters, while the former minister has kept a deafening silence on the matter.
