In a newly released personal account, called Ithaki, the former premier Tsipras does not hold back while he examines that chaotic era of Greece's debt drama.
An Unconventional Choice
According to Tsipras's account, he chose that unorthodox academic Yanis Varoufakis to be his finance minister largely due to his global profile along with Varoufakis's very persuasive skills when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis had a personal motives that included advancing his books and testing out his own game theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras wrote that those negotiations to prevent insolvency were “not only a way of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was not only Greece's future and the harsh austerity policies demanded in return for financial aid from international creditors.
Failed Alternatives
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action which threw the EU into further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option but to ignore the result and negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency as well as distributing coupons to retirees, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and delicate management.”
He also wrote that his aggressive approach left him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The account of history has provoked anger and shock in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
