In a newly released memoir, named Ithaki, the ex- leader Tsipras pulls no punches while he examines that chaotic period during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's recollections, Tsipras chose that maverick academic Yanis Varoufakis as the finance minister mainly due to the latter's worldwide fame and his “extremely attractive” skills as a public orator.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief possessed a personal motives which included advancing Varoufakis's books as well as testing out his own economic models using the nation rather than genuinely fighting for its financial survival.
He explained that those negotiations to avoid insolvency were “not just a method to secure a better deal for the country. They were a test, an historic chance to prove the truth of his theories.”
Critical Talks
Amid volatile negotiations, Greece found itself perilously close to exiting the eurozone.
At stake was both Greece's future but also the severe cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the referendum was carried decisively by voters against austerity, the prime minister had little option to ignore the result then negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was the end and asked him: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes how his former ally demonstrated himself to be “unfit for a deal demanding intricate and sensitive handling.”
He further wrote how Varoufakis's confrontational style left him more and more alone with colleagues, endangered the country, and assisted hawks that were advocating a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
