In a recently unveiled memoir, titled Ithaki, the ex- premier Tsipras pulls no punches as he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose that maverick economist Yanis Varoufakis as the finance minister largely due to his worldwide fame and Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, in reality, more of a personality rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief had a personal agenda that involved advancing Varoufakis's books as well as testing out his own theories on Greece instead of truly fighting for its economic stability.
Tsipras wrote that those negotiations to stave off insolvency became “not just a method to secure improved terms for the country. They were a test, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also those punishing cutbacks demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the excoriating conditions were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras had little option but to ignore the result and agree to a rescue deal with foreign lenders which proved to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's confrontational style made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
