In a recently unveiled personal account, called Ithaki, the ex- premier Tsipras spares no criticism as he examines that chaotic period of Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, Tsipras chose that maverick economist Yanis Varoufakis to be the treasury head largely due to the latter's global profile and Varoufakis's “extremely attractive” skills when it came to speaker.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader claims how his finance chief had a personal motives which included promoting Varoufakis's books and experimenting with his own economic models using the nation instead of genuinely advocating the country's economic stability.
He noted how those negotiations to stave off insolvency became “not just a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously on the brink of exiting the eurozone.
At stake lay not only the country's future and the punishing austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, including a desperate appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result then agree to a bailout package from creditors that proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who graced the covers of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was the end questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
He also claimed that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
