Within his recently unveiled memoir, called Ithaki, the former premier Tsipras does not hold back as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis to be the finance minister mainly due to his international reputation and his “extremely attractive” skills as a public orator.
“He was, actually, more like a celebrity and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief had his own motives that involved advancing his books as well as experimenting with his economic models using Greece instead of truly advocating its economic stability.
Tsipras wrote that those talks to prevent insolvency became “not only a method of achieving a better deal for Greece. They became an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece came perilously close to exiting the single currency area.
On the line lay both Greece's destiny and the severe cutbacks demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a public vote, an action that plunged the EU into deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced to ignore the result then negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a parallel currency as well as distributing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate handling.”
He also wrote how his 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 history has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
