In a newly released personal account, named Ithaki, the former leader Tsipras spares no criticism as he revisits the turbulent period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed that maverick economist Yanis Varoufakis to be the treasury head primarily because of his global profile and Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, truthfully, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader claims how his finance chief had a personal agenda which included advancing Varoufakis's publications as well as testing out his economic models using the nation instead of truly fighting for its financial survival.
Tsipras wrote how those negotiations to stave off bankruptcy were “not only a method to secure a better deal for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
Critical Talks
Amid rollercoaster negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake was both Greece's future but also those severe austerity policies demanded in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country was equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, a move that plunged the EU into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters against austerity, the prime minister was forced to reject its outcome then agree to a bailout package from creditors which proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, the leader knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
He also claimed how Varoufakis's aggressive style made him more and more alone with colleagues, endangered the country, and assisted hardliners who were pushing for Grexit.
The account of history has been met with anger and shock among certain groups, while the former minister has so far maintained a deafening silence on the matter.
