In a freshly published personal account, called Ithaki, the former premier Tsipras pulls no punches as he examines that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he appointed that unorthodox economist Yanis Varoufakis as the treasury head mainly due to the latter's worldwide fame and his highly compelling abilities as a communicator.
“He was, actually, more of a personality rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis possessed his own agenda that involved advancing Varoufakis's publications as well as experimenting with his own theories using Greece rather than truly advocating the country's financial survival.
He explained how the discussions to avoid bankruptcy became “not only a way of achieving a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of his ideas.”
High-Stakes Talks
Amid volatile discussions, the country came dangerously on the brink of exiting the eurozone.
At stake was not only the country's destiny and the punishing austerity policies required in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, including a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those punitive conditions were put to a public vote, a move which plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters who opposed austerity, the prime minister had little option to reject its outcome and agree to a bailout package with foreign lenders which turned out to be even harsher.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan that included creating a parallel currency and issuing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and delicate handling.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
This account of events has provoked fury along with stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
