In a recently unveiled personal account, titled Ithaki, the former prime minister Tsipras spares no criticism while he examines that turbulent period during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, he appointed that maverick academic Yanis Varoufakis as the finance minister mainly because of the latter's international reputation along with his very persuasive skills as a speaker.
“In reality, he was, in reality, more like a celebrity and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own agenda that included advancing Varoufakis's publications and testing out his game theories using Greece instead of genuinely 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 a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
During tense discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line was both the country's destiny but also the punishing austerity measures required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those harsh conditions were put to a public vote, an action which threw the EU into a deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option to ignore the result then agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the man who drew media attention, who graced the front pages of magazines the world over … it seemed he relished his new role.”
When the minister proposed a backup strategy involving establishing a secondary currency and issuing coupons to pensioners, the leader knew that it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement demanding complex and delicate management.”
He also wrote how Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
