Within his freshly published memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that turbulent period during Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's account, he selected that maverick academic Yanis Varoufakis as the treasury head mainly because of his global profile along with Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims that Varoufakis possessed his own motives that involved advancing his books as well as testing out his own theories using Greece rather than genuinely fighting for the country's economic stability.
Tsipras explained that those negotiations to prevent bankruptcy were “not only a method to secure a better deal for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid tense discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line was not only the country's destiny and those punishing austerity measures demanded in return for financial aid by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a public vote, a move that plunged Europe into further existential crisis.
Although the referendum was won decisively by those against austerity, the prime minister had little option to reject its outcome then negotiate a bailout package from creditors which proved to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This account of events has been met with anger and shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
