In a freshly published memoir, titled Ithaki, the ex- premier Tsipras pulls no punches as he reflects on that turbulent era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, he appointed the unorthodox economist Yanis Varoufakis as his treasury head mainly because of his global profile and his highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis had a personal agenda which included promoting his publications and experimenting with his economic models on Greece rather than truly advocating its financial survival.
He explained how the discussions to prevent bankruptcy became “not only a method to secure improved terms for Greece. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense negotiations, the country came perilously close to leaving the single currency area.
On the line was both Greece's destiny and those harsh austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a popular referendum, an action that threw Europe into a further crisis of identity.
Although the vote was carried decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome then agree to a rescue deal from foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving creating a secondary currency as well as distributing vouchers to retirees, Tsipras knew it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement demanding intricate and sensitive handling.”
He further wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hawks who were advocating Grexit.
This account of history has provoked anger along with shock in some quarters, while the former minister has so far kept a deafening silence on the matter.
