Within his newly released personal account, named Ithaki, the ex- premier Tsipras pulls no punches as he examines that chaotic period of Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's account, he selected the maverick academic Yanis Varoufakis as his finance minister largely due to the latter's international reputation and his very persuasive skills when it came to speaker.
“He was, in reality, more like a star rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal motives which included advancing Varoufakis's publications as well as testing out his own theories on the nation rather than genuinely advocating the country's economic stability.
Tsipras explained that those talks to stave off insolvency were “not only a method of achieving improved terms for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was not only Greece's destiny but also those punishing austerity policies required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.
Although the referendum was carried resoundingly by voters against the cuts, the prime minister had little option but to reject its outcome then negotiate a rescue deal with creditors which turned out to be more severe.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving creating a secondary currency as well as issuing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were pushing for Grexit.
The account of history has been met with anger along with stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
