In a freshly published memoir, called Ithaki, the ex- premier Tsipras does not hold back while he revisits that chaotic period during Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, he chose the unorthodox economist Yanis Varoufakis to be the finance minister mainly because of the latter's worldwide fame and his “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more of a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how Varoufakis had his own motives that included promoting Varoufakis's books as well as experimenting with his own economic models using the nation rather than truly fighting for its financial survival.
He explained how the talks to avoid insolvency became “not only a method of achieving a better deal for the country. They were an experiment, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake was both the country's future and the harsh austerity policies required in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those excoriating bailout terms were put to a popular referendum, a move that plunged the EU into a further crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister was forced but to ignore the result and negotiate a bailout package with foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
After the minister proposed a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis had proved himself to be “unfit for an agreement that required intricate and sensitive handling.”
He further wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has maintained a deafening silence on the matter.
