In a newly released personal account, named Ithaki, the former prime minister Tsipras does not hold back as he revisits that turbulent period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, he chose that unorthodox economist Yanis Varoufakis as his treasury head largely due to the latter's global profile and his very persuasive abilities as a speaker.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” stated Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own agenda which involved advancing Varoufakis's books and testing out his theories on the nation rather than genuinely advocating the country's financial survival.
Tsipras wrote that the talks to prevent insolvency were “not just a way to secure a better deal for the country. They became a test, an historic chance to prove the truth of his ideas.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake was not only Greece's destiny but also those punishing austerity policies demanded in return for bailout funds from international creditors.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, a move that threw the EU into deeper crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras had little option to reject its outcome and agree to a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras further claimed how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of events has been met with fury and shock among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
