Within his newly released personal account, titled Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on that turbulent period during Greece's debt drama.
A Controversial Appointment
According to Tsipras's account, Tsipras chose the unorthodox economist Yanis Varoufakis to be the treasury head primarily because of the latter's global profile and Varoufakis's “extremely attractive” skills as a speaker.
“He was, actually, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis possessed a personal agenda which included promoting his books and testing out his economic models using Greece rather than genuinely fighting for its economic stability.
He wrote that those talks to prevent insolvency became “not only a way of achieving a better deal for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Talks
During tense negotiations, the country found itself perilously close to leaving the single currency area.
At stake lay both Greece's destiny and those punishing austerity policies required in return for bailout funds by foreign lenders.
Failed Options
Efforts to find financing from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, an action which threw the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After the minister outlined a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, the leader knew it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He further wrote how Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for Grexit.
The retelling of history has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
