In a recently unveiled personal account, named Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the turbulent era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's version, he chose that unorthodox economist Yanis Varoufakis to be his treasury head mainly because of his international reputation and Varoufakis's very persuasive skills as a public orator.
“In reality, he was, truthfully, more of a star rather than an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests how Varoufakis had a personal agenda that involved promoting Varoufakis's books as well as testing out his theories on Greece rather than truly advocating its economic stability.
He noted how the discussions to avoid bankruptcy became “not only a way of achieving a better deal for Greece. They became a test, a monumental chance to demonstrate the truth of his theories.”
Critical Negotiations
During volatile discussions, Greece found itself perilously close to exiting the single currency area.
On the line was not only Greece's future but also the harsh austerity measures required in return for financial aid from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were subjected to a popular referendum, a move that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced but to ignore the result and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras knew it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras concludes how his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He also claimed how his confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
The retelling of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
