Within his freshly published personal account, called Ithaki, the former premier Tsipras pulls no punches while he reflects on that chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras chose the unorthodox economist Yanis Varoufakis to be the treasury head mainly because of the latter's international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed a personal agenda that included promoting his books as well as experimenting with his own game theories on Greece rather than truly fighting for its financial survival.
Tsipras noted that those negotiations to stave off insolvency were “not only a way to secure a better deal for the country. They were a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay both Greece's destiny but also the harsh austerity measures required in return for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the harsh conditions were subjected to a popular referendum, a move that threw Europe into a further crisis of identity.
Although the vote was won resoundingly by voters against austerity, Tsipras had little option to ignore the result and agree to a bailout package from creditors that turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After the minister outlined a backup strategy that included creating a secondary currency and distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also claimed how Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has been met with fury along with shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
