In a newly released personal account, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that turbulent era of Greece's financial crisis.
A Controversial Choice
In Tsipras's account, he chose that unorthodox academic Yanis Varoufakis as his finance minister primarily due to his international reputation and his “extremely attractive” skills as a speaker.
“He was, in reality, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal motives which included promoting his publications and experimenting with his own game theories on the nation rather than genuinely advocating its economic stability.
Tsipras explained that those negotiations to stave off bankruptcy were “not only a way of achieving a better deal for the country. They were an experiment, a monumental chance to prove the validity of his economic theories.”
High-Stakes Talks
During volatile discussions, Greece found itself perilously close to exiting the single currency area.
At stake lay not only Greece's future and those severe austerity measures required in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move that plunged Europe into further existential crisis.
Even though the referendum was won resoundingly by those against the cuts, the prime minister had little option to reject its outcome and agree to a bailout package from creditors that proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency and issuing coupons to retirees, Tsipras said he realised it was the end questioning him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were advocating Grexit.
This retelling of history has been met with fury along with stunned disbelief in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
