In a newly released personal account, named Ithaki, the former prime minister Tsipras does not hold back while he reflects on the turbulent period during Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, he selected the unorthodox economist Yanis Varoufakis to be the finance minister largely because of his worldwide fame along with his very persuasive skills as a communicator.
“In reality, he was, in reality, more like a celebrity rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis had his own agenda that involved advancing Varoufakis's publications as well as experimenting with his own economic models on the nation instead of genuinely fighting for the country's economic stability.
Tsipras wrote that the talks to avoid insolvency were “not only a way of achieving a better deal for Greece. They became an experiment, a monumental chance to prove the validity of his ideas.”
Critical Negotiations
During volatile negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake was not only the country's destiny but also those harsh austerity policies demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed the cuts, Tsipras had little option but to reject its outcome then agree to a rescue deal from creditors which turned out to be tougher.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced 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 secondary currency and distributing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Are you serious?”
Lasting Rebuke
Within the memoir, the author concludes how Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive handling.”
He also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and shock in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
