In a freshly published personal account, titled Ithaki, the former premier Tsipras pulls no punches while he revisits the chaotic era of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's recollections, Tsipras selected the unorthodox economist Yanis Varoufakis to be the treasury head mainly due to his international reputation and his highly compelling skills as a speaker.
“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief possessed his own agenda which included promoting his books as well as experimenting with his own economic models using the nation rather than truly advocating its financial survival.
Tsipras explained how those talks to prevent insolvency were “not only a way to secure improved terms for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Talks
Amid rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
On the line was not only Greece's destiny and those punishing austerity policies demanded in return for rescue loans from international creditors.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those harsh conditions were subjected to a public vote, an action which plunged Europe into further existential crisis.
Although the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and delicate management.”
He also wrote how his aggressive approach left him increasingly isolated among peers, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
This account of events has been met with fury along with shock among certain groups, whereas the former minister has maintained a deafening silence regarding these claims.
