Within his freshly published personal account, titled Ithaki, the former prime minister Tsipras does not hold back while he revisits that turbulent period of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, Tsipras selected the maverick economist Yanis Varoufakis as his treasury head mainly because of the latter's international reputation along with Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more like a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief had his own agenda that involved promoting Varoufakis's books as well as experimenting with his game theories using the nation rather than truly advocating its financial survival.
He wrote how the talks to stave off bankruptcy became “not only a way to secure improved terms for Greece. They became an experiment, an historic chance to prove the validity of his ideas.”
High-Stakes Negotiations
During tense negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line lay not only the country's future but also those harsh cutbacks demanded in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the vote was carried decisively by those who opposed austerity, the prime minister was forced but to reject its outcome and agree to a bailout package with foreign lenders which proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and delicate management.”
He further wrote that his aggressive approach made him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked anger along with shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
