In a newly released personal account, named Ithaki, the ex- premier Tsipras pulls no punches while he examines the chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he selected that maverick economist Yanis Varoufakis to be his treasury head largely because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities when it came to speaker.
“He was, in reality, more of a celebrity and less of an economic expert,” stated Tsipras.
Clashing Priorities
The former leader claims that Varoufakis had a personal agenda which involved advancing his publications as well as testing out his game theories using Greece rather than truly fighting for the country's economic stability.
Tsipras wrote that those discussions to avoid insolvency became “not just a way to secure improved terms for Greece. They became a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, the country came dangerously close to exiting the single currency area.
On the line was both the country's destiny but also the harsh cutbacks demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent plea to Russia to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, those excoriating conditions were put to a public vote, a move that threw the EU into deeper existential crisis.
Although the referendum was won resoundingly by those against austerity, Tsipras was forced to reject its outcome then agree to a bailout package from creditors that proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
