Within his newly released memoir, called Ithaki, the ex- leader Tsipras spares no criticism while he revisits that turbulent period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's recollections, Tsipras appointed that unorthodox economist Yanis Varoufakis as the treasury head mainly due to his worldwide fame along with his “extremely attractive” skills as a communicator.
“He was, actually, more of a star and less of an economist,” wrote Tsipras.
Conflicting Priorities
The former leader claims how his finance chief possessed his own motives which included promoting Varoufakis's books and testing out his theories on the nation instead of truly advocating its financial survival.
He wrote how the discussions to avoid insolvency became “not only a way to secure a better deal for the country. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line lay both Greece's future but also the harsh austerity policies required in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those harsh bailout terms were subjected to a public vote, an action that threw the EU into a deeper crisis of identity.
Although the vote was carried decisively by those against austerity, Tsipras had little option to reject its outcome and agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who drew media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts that his former ally demonstrated himself “unfit for a deal demanding complex and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hardliners that were pushing for Grexit.
This account of events has provoked fury and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
