🔗 Share this article

In a freshly published memoir, named Ithaki, the former premier Tsipras spares no criticism as he reflects on that chaotic era during Greece's debt drama.

An Unconventional Choice

In the ex-PM's version, he chose the maverick economist Yanis Varoufakis to be the treasury head largely due to the latter's global profile and his very persuasive skills as a communicator.

“In reality, he was, actually, more like a star and less of an economist,” wrote Tsipras.

Conflicting Priorities

Tsipras suggests that Varoufakis had a personal motives which included promoting Varoufakis's books as well as experimenting with his theories on Greece instead of truly advocating its economic stability.

He wrote that those discussions to prevent bankruptcy were “not only a way to secure a better deal for the country. They became a test, an historic opportunity to prove the truth of his economic theories.”

Critical Negotiations

Amid rollercoaster negotiations, the country found itself dangerously on the brink of exiting the single currency area.

On the line was both Greece's destiny and those harsh cutbacks required in return for rescue loans by international creditors.

Unsuccessful Options

Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.

Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.

Public Vote Followed by Reversal

That summer, the excoriating conditions were subjected to a public vote, an action that threw Europe into a deeper crisis of identity.

Although the referendum was won resoundingly by voters against austerity, Tsipras had little option to reject its outcome and negotiate a bailout package with creditors that turned out to be tougher.

Breaking Point

Tsipras revealed how he started questioning Varoufakis relatively soon.

“He was the public image of the talks, the figure who drew publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”

After the minister outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”

Enduring Criticism

Within the memoir, the author asserts that Varoufakis had proved himself “unfit for a deal that required intricate and delicate management.”

Tsipras also wrote that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for Grexit.

The account of events has been met with fury and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.