In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras spares no criticism as he revisits that chaotic period during Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be his treasury head mainly because of his international reputation and Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, truthfully, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal motives which involved promoting his books as well as testing out his own game theories using Greece rather than truly fighting for its financial survival.
He wrote that those discussions to stave off insolvency were “not just a way to secure a better deal for Greece. They became a test, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, the country found itself perilously close to leaving the single currency area.
On the line was both Greece's destiny but also those severe austerity policies demanded in exchange for bailout funds by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, a move that threw the EU into further crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, Tsipras was forced to ignore the result then agree to a rescue deal with creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras also claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
