Within his freshly published personal account, titled Ithaki, the ex- premier Tsipras pulls no punches while he revisits the chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, he appointed the unorthodox economist Yanis Varoufakis to be his finance minister mainly because of the latter's international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a star and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had a personal agenda that included promoting Varoufakis's publications as well as experimenting with his economic models on Greece rather than truly advocating its economic stability.
Tsipras noted that the negotiations to avoid bankruptcy became “not only a way of achieving a better deal for the country. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, the country came perilously close to exiting the single currency area.
On the line lay both the country's future but also those severe austerity policies demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the harsh conditions were subjected to a popular referendum, a move that plunged the EU into a further crisis of identity.
Even though the vote was carried resoundingly by voters who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a parallel currency and distributing coupons to pensioners, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating Grexit.
This account of history has provoked anger and stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet on the matter.
