In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits the chaotic era during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's recollections, Tsipras selected the maverick economist Yanis Varoufakis as his finance minister largely because of the latter's international reputation along with Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims that Varoufakis had his own agenda which involved promoting Varoufakis's publications as well as experimenting with his game theories on Greece rather than genuinely advocating its economic stability.
He explained that the negotiations to avoid insolvency were “not just a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously on the brink of exiting the single currency area.
On the line lay both Greece's future and those punishing austerity measures required in return for financial aid from international creditors.
Failed Options
Efforts to secure financing from other sources, including a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were put to a public vote, a move which threw the EU into a further crisis of identity.
Even though the vote was carried decisively by voters against austerity, Tsipras had little option to reject its outcome then negotiate a bailout package from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister outlined a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, the leader said he realised it was game over questioning him: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes that his former ally demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
He also wrote how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
