In a recently unveiled autobiography, called Ithaki, the former prime minister Tsipras does not hold back as he examines that chaotic era of Greece's financial crisis.
A Controversial Choice
As per Tsipras's recollections, Tsipras selected the unorthodox economist Yanis Varoufakis to be the finance minister primarily due to his international reputation along with his “extremely attractive” abilities as a speaker.
“He was, in reality, more like a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief had his own motives which included promoting Varoufakis's publications as well as experimenting with his own economic models using Greece instead of genuinely fighting for its economic stability.
Tsipras noted how those talks to prevent bankruptcy became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of his ideas.”
Critical Talks
Amid volatile discussions, Greece came perilously on the brink of exiting the single currency area.
On the line lay not only the country's destiny and those severe austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to find funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, those excoriating bailout terms were put to a public vote, a move that plunged Europe into a deeper existential crisis.
Although the vote was carried decisively by those who opposed the cuts, Tsipras was forced to ignore the result then negotiate a rescue deal from creditors which proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and distributing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, the author asserts how Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating Grexit.
This account of events has provoked fury and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
