In a recently unveiled personal account, titled Ithaki, the former premier Tsipras does not hold back while he revisits that chaotic era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's account, Tsipras selected that maverick economist Yanis Varoufakis to be the treasury head largely because of his international reputation along with his highly compelling skills when it came to public orator.
“He was, truthfully, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests how his finance chief possessed a personal motives that involved promoting his books and testing out his economic models on Greece instead of truly fighting for its economic stability.
Tsipras noted how those negotiations to stave off bankruptcy became “not only a method of achieving improved terms for Greece. They were a test, a monumental chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's destiny and the punishing austerity measures required in return for financial aid by foreign lenders.
Failed Alternatives
Attempts to secure funds elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those excoriating bailout terms were put to a public vote, an action that threw the EU into a further existential crisis.
Although the vote was carried decisively by those against austerity, Tsipras had little option but to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included creating a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate handling.”
Tsipras further claimed how his confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury along with shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
