Within his newly released memoir, called Ithaki, the ex- prime minister Tsipras does not hold back while he revisits the turbulent period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, Tsipras chose the maverick economist Yanis Varoufakis to be the finance minister mainly due to the latter's worldwide fame along with Varoufakis's highly compelling abilities when it came to speaker.
“He was, truthfully, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims that his finance chief had a personal agenda that included promoting his publications as well as testing out his economic models on the nation instead of genuinely fighting for its financial survival.
He noted that the discussions to stave off insolvency became “not only a method to secure improved terms for Greece. They became a test, a monumental chance to demonstrate the truth of his ideas.”
Critical Negotiations
During volatile negotiations, the country found itself perilously close to leaving the single currency area.
On the line was both the country's destiny and the punishing austerity policies required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that plunged the EU into further existential crisis.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras had little option to ignore the result and agree to a bailout package from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
