In a newly released personal account, named Ithaki, the former premier Tsipras pulls no punches as he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, he chose the unorthodox economist Yanis Varoufakis to be the treasury head mainly due to the latter's global profile and his “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief possessed his own motives that included promoting his publications and experimenting with his game theories using the nation instead of truly advocating the country's financial survival.
Tsipras wrote that those negotiations to avoid insolvency were “not only a way of achieving improved terms for the country. They were a test, a monumental chance to prove the validity of his economic theories.”
High-Stakes Talks
During volatile discussions, Greece found itself perilously close to exiting the eurozone.
At stake was not only Greece's future and those punishing austerity measures demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into deeper existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package from creditors that turned out 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 drew media attention, who appeared on the covers of publications globally … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate management.”
He also wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks who were advocating Grexit.
The account of history has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
