Within his freshly published memoir, called Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, he selected that unorthodox economist Yanis Varoufakis to be his treasury head mainly because of his global profile along with Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, actually, more like a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that Varoufakis had a personal agenda that included promoting his publications and experimenting with his own economic models on the nation instead of truly fighting for its financial survival.
He noted that the negotiations to prevent insolvency were “not just a method of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During rollercoaster discussions, the country came dangerously on the brink of leaving the single currency area.
At stake was not only the country's future but also the harsh austerity policies required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as an urgent plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were put to a public vote, a move which plunged Europe into further existential crisis.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to ignore the result and negotiate a bailout package from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as issuing coupons to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and sensitive handling.”
He also wrote that his confrontational approach made him increasingly isolated with colleagues, endangered the country, while helped hardliners who were advocating Grexit.
The retelling of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
