In a newly released personal account, called Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, he selected the maverick economist Yanis Varoufakis to be the treasury head primarily because of his international reputation along with his highly compelling abilities when it came to communicator.
“In reality, he was, truthfully, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis had a personal motives which involved promoting his books and testing out his theories using the nation rather than truly advocating the country's economic stability.
He explained how the negotiations to avoid insolvency became “not only a method of achieving improved terms for the country. They were a test, an historic chance to prove the validity of his economic theories.”
Critical Negotiations
Amid volatile discussions, the country came perilously close to exiting the single currency area.
On the line was both Greece's destiny and those punishing cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those punitive bailout terms were put to a popular referendum, an action which plunged the EU into further existential crisis.
Although the vote was carried resoundingly by those against austerity, Tsipras was forced but to ignore the result and agree to a bailout package from foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and distributing coupons to retirees, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes how his former ally had proved himself to be “unfit for a deal that required intricate and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and assisted hardliners that were advocating Grexit.
The retelling of events has provoked anger along with shock among certain groups, while the former minister has so far kept a deafening silence on the matter.
