In a newly released personal account, titled Ithaki, the former prime minister Tsipras spares no criticism while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Choice
As per Tsipras's recollections, Tsipras chose the maverick economist Yanis Varoufakis as the treasury head primarily due to the latter's global profile along with his “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more like a star rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader suggests how his finance chief possessed a personal agenda which included advancing Varoufakis's books as well as testing out his theories on Greece rather than genuinely fighting for the country's economic stability.
He explained that the negotiations to avoid insolvency were “not just a method to secure a better deal for the country. They became a test, a monumental chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country found itself perilously on the brink of leaving the single currency area.
At stake was both Greece's destiny but also the harsh austerity measures demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, a move which threw Europe into further existential crisis.
Although the vote was carried decisively by voters who opposed austerity, Tsipras was forced but to ignore the result and agree to a rescue deal with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate management.”
He further wrote how his aggressive style made him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This account of history has been met with fury along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
