In a newly released personal account, called Ithaki, the ex- prime minister Tsipras does not hold back as he reflects on that chaotic era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, Tsipras chose that maverick economist Yanis Varoufakis to be the finance minister primarily due to his international reputation along with his highly compelling skills as a public orator.
“In reality, he was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis had his own agenda which involved promoting Varoufakis's books as well as testing out his own theories on the nation instead of truly fighting for its economic stability.
Tsipras noted how those negotiations to stave off insolvency were “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny but also the punishing austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were subjected to a public vote, an action that threw Europe into deeper existential crisis.
Although the vote was won resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal from creditors which proved to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
After the minister proposed a contingency plan involving establishing a secondary currency as well as distributing coupons to retirees, Tsipras said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
In the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This account of history has been met with fury and shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
