In a freshly published memoir, called Ithaki, the ex- premier Tsipras does not hold back while he reflects on the chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras appointed that maverick economist Yanis Varoufakis to be the finance minister primarily due to the latter's international reputation and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, truthfully, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed a personal agenda that included promoting Varoufakis's publications as well as testing out his own economic models on Greece instead of genuinely advocating its economic stability.
He wrote how those discussions to prevent bankruptcy were “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came dangerously close to leaving the single currency area.
On the line lay not only Greece's future but also those harsh cutbacks required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those excoriating conditions were subjected to a popular referendum, an action that threw the EU into further crisis of identity.
Even though the vote was won resoundingly by those against austerity, Tsipras had little option but to reject its outcome and agree to a bailout package with creditors that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
Tsipras also claimed how his confrontational approach made him increasingly isolated among peers, endangered the country, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has provoked fury and shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
