In a recently unveiled memoir, called Ithaki, the former leader Tsipras spares no criticism as he reflects on the turbulent period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's account, Tsipras chose that maverick academic Yanis Varoufakis as his finance minister mainly due to his worldwide fame and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief had his own agenda which included promoting Varoufakis's publications as well as experimenting with his economic models on Greece rather than genuinely advocating its financial survival.
He explained how those negotiations to prevent insolvency became “not only a way of achieving a better deal for Greece. They became a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile negotiations, Greece came dangerously close to exiting the single currency area.
At stake was not only the country's destiny but also those severe austerity policies demanded in exchange for rescue loans from foreign lenders.
Failed Options
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move which threw Europe into a further existential crisis.
Although the vote was won decisively by those who opposed the cuts, Tsipras was forced but to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing coupons to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
He further claimed that his aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock among certain groups, whereas the former minister has so far kept a deafening silence regarding these claims.
