In a recently unveiled personal account, titled Ithaki, the former premier Tsipras spares no criticism as he reflects on the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, he appointed the maverick economist Yanis Varoufakis to be his finance minister mainly due to the latter's global profile along with his very persuasive skills as a speaker.
“He was, truthfully, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal agenda which included promoting his books and testing out his game theories using Greece rather than truly advocating the country's economic stability.
He noted that the discussions to prevent insolvency were “not just a method of achieving a better deal for the country. They became an experiment, a monumental opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During volatile negotiations, the country found itself perilously close to leaving the eurozone.
At stake was both the country's destiny but also those harsh austerity policies required in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those excoriating conditions were subjected to a public vote, an action that plunged the EU into a further existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras had little option to reject its outcome and agree to a rescue deal with creditors that proved to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who drew publicity, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and issuing coupons to retirees, the leader said he realised that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras further wrote that his confrontational approach left him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
The retelling of history has provoked anger along with shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
