In a newly released personal account, titled Ithaki, the ex- leader Tsipras pulls no punches while he reflects on that chaotic era during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, he selected that maverick academic Yanis Varoufakis as the finance minister mainly due to his international reputation along with his highly compelling skills as a communicator.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that Varoufakis had a personal agenda which included promoting Varoufakis's books as well as experimenting with his economic models on Greece rather than genuinely fighting for the country's economic stability.
He noted that those talks to avoid insolvency became “not only a way of achieving a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his ideas.”
Critical Talks
Amid volatile negotiations, the country came dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future and those severe austerity measures required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure funds from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, a move which threw Europe into deeper crisis of identity.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When 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 him: “Is this for real?”
Enduring Criticism
Within the book, the author concludes how Varoufakis had proved himself “unsuitable for a deal that required intricate and delicate handling.”
He also claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger and shock in some quarters, whereas the former minister has maintained a deafening silence on the matter.
