In a freshly published memoir, named Ithaki, the ex- premier Tsipras spares no criticism while he examines the turbulent period of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, he appointed the maverick economist Yanis Varoufakis as the finance minister primarily because of his international reputation and his “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis had his own motives that involved advancing his books and testing out his economic models on the nation instead of truly fighting for its economic stability.
Tsipras explained that the talks to stave off bankruptcy became “not just a way to secure improved terms for the country. They became a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece found itself perilously close to exiting the single currency area.
At stake was not only Greece's future and those harsh austerity policies required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and sensitive management.”
Tsipras also claimed that his aggressive approach made him more and more alone among peers, put Greece at risk, while assisted hardliners that were advocating Grexit.
This account of history has been met with anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
