In a recently unveiled personal account, called Ithaki, the former premier Tsipras pulls no punches as he revisits that turbulent period during Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, Tsipras appointed that unorthodox academic Yanis Varoufakis to be his finance minister mainly due to his international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, actually, more of a celebrity and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis possessed his own agenda that involved advancing his publications and testing out his theories on the nation rather than genuinely advocating its economic stability.
Tsipras wrote that those negotiations to stave off insolvency were “not just a method to secure a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
During tense negotiations, the country found itself perilously on the brink of exiting the eurozone.
On the line was both Greece's destiny but also those harsh austerity policies required in return for rescue loans by international creditors.
Failed Alternatives
Efforts to secure funds from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those harsh conditions were subjected to a popular referendum, an action that plunged the EU into further existential crisis.
Although the vote was carried resoundingly by those who opposed the cuts, the prime minister had little option but to reject its outcome then agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and delicate handling.”
He also wrote how Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with anger and stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence on the matter.
