In a newly released memoir, called Ithaki, the ex- premier Tsipras does not hold back while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis as the treasury head mainly due to his international reputation and his very persuasive abilities when it came to public orator.
“He was, actually, more like a celebrity rather than an economist,” stated Tsipras.
Conflicting Agendas
The former leader claims how his finance chief had a personal motives that included promoting his publications and testing out his own economic models on the nation instead of genuinely advocating the country's financial survival.
Tsipras noted how those discussions to avoid insolvency became “not just a method to secure a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Talks
During rollercoaster negotiations, the country came perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future but also those harsh austerity policies required in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the harsh conditions were put to a public vote, an action that threw Europe into a deeper crisis of identity.
Although the referendum was won decisively by those who opposed the cuts, the prime minister had little option to ignore the result and agree to a rescue deal from creditors that turned out to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included establishing a parallel currency and distributing coupons to retirees, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive management.”
He further claimed that his confrontational approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
