In a recently unveiled personal account, titled Ithaki, the former leader Tsipras pulls no punches while he reflects on that turbulent era during Greece's debt drama.
A Controversial Appointment
In the ex-PM's recollections, he selected the unorthodox academic Yanis Varoufakis as his treasury head largely due to the latter's worldwide fame and his highly compelling abilities as a public orator.
“He was, in reality, more like a star and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief possessed his own motives which involved advancing Varoufakis's books and experimenting with his own theories on Greece rather than genuinely advocating its economic stability.
Tsipras wrote that the negotiations to avoid bankruptcy were “not only a method to secure improved terms for Greece. They became a test, a monumental chance to prove the truth of his economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake lay both the country's destiny but also the harsh austerity policies required in return for bailout funds by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were subjected to a public vote, an action which plunged the EU into a further crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result then agree to a bailout package from creditors that proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy involving creating a parallel currency and issuing coupons to retirees, the leader said he realised that it was game over questioning him: “Is this for real?”
Lasting Rebuke
Within the memoir, the author concludes how his former ally demonstrated himself “unfit for a deal demanding intricate and delicate handling.”
He also claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were pushing for Grexit.
The retelling of history has provoked anger and shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
