Within his recently unveiled personal account, called Ithaki, the former leader Tsipras spares no criticism while he revisits the chaotic era during Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's recollections, he chose the maverick economist Yanis Varoufakis as the treasury head primarily because of the latter's international reputation along with Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, truthfully, more of a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had his own motives which involved promoting his books and testing out his own theories on Greece rather than genuinely advocating the country's economic stability.
He noted how those discussions to avoid insolvency became “not only a way to secure improved terms for the country. They were a test, an historic chance to prove the validity of his theories.”
Critical Negotiations
During rollercoaster negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was both the country's destiny but also those severe austerity policies required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, those punitive bailout terms were put to a public vote, a move that threw the EU into a further existential crisis.
Although the vote was carried decisively by those who opposed the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from creditors that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised that it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required complex and delicate handling.”
He also claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with anger along with stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
