In a freshly published personal account, titled Ithaki, the ex- premier Tsipras does not hold back as he revisits that turbulent period of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's version, he chose that maverick economist Yanis Varoufakis as his finance minister mainly because of the latter's worldwide fame and his “extremely attractive” skills when it came to public orator.
“He was, actually, more like a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims how Varoufakis had a personal motives which included promoting his publications and testing out his own economic models on the nation instead of genuinely fighting for the country's economic stability.
Tsipras noted how those discussions to avoid insolvency were “not only a method to secure improved terms for Greece. They became an experiment, an historic chance to prove the validity of his theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was both Greece's destiny and those severe cutbacks required in return for rescue loans by international creditors.
Failed Options
Attempts to secure funds from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those excoriating bailout terms were put to a popular referendum, a move that threw Europe into deeper crisis of identity.
Although the vote was carried decisively by those who opposed the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who drew publicity, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement that required complex and sensitive management.”
He further wrote that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The retelling of history has provoked fury along with shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
