In a newly released personal account, titled Ithaki, the ex- premier Tsipras spares no criticism as he revisits that turbulent period of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's recollections, he chose that maverick academic Yanis Varoufakis as the finance minister mainly due to his worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis had his own motives which included promoting his publications as well as testing out his own game theories using Greece rather than genuinely advocating its financial survival.
He wrote that those discussions to stave off bankruptcy were “not just a way of achieving improved terms for the country. They were a test, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country came perilously close to exiting the single currency area.
At stake was not only Greece's destiny and those severe austerity measures demanded in exchange for financial aid from international creditors.
Failed Options
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh conditions were put to a public vote, an action that threw Europe into further crisis of identity.
Although the vote was carried decisively by voters against the cuts, the prime minister had little option to ignore the result and negotiate a bailout package from foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency and issuing coupons to pensioners, the leader knew that it was game over questioning him: “Is this for real?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis had proved himself to be “unfit for an agreement that required complex and delicate management.”
He further wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has provoked fury and shock among certain groups, whereas the former minister has kept a deafening silence on the matter.
