Within his newly released memoir, named Ithaki, the former premier Tsipras pulls no punches while he reflects on that turbulent era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed the unorthodox economist Yanis Varoufakis as his finance minister largely because of the latter's international reputation and his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more like a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief had a personal motives which involved advancing Varoufakis's publications and experimenting with his own theories using the nation rather than truly advocating the country's economic stability.
He explained that those discussions to avoid bankruptcy became “not just a way of achieving a better deal for Greece. They became a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously on the brink of exiting the single currency area.
On the line lay not only the country's destiny and the severe cutbacks demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, a move that threw the EU into further existential crisis.
Although the referendum was won resoundingly by voters against the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how his former ally demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
Tsipras also wrote that his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
This account of events has been met with fury along with stunned disbelief among certain groups, while the former minister has maintained a deafening silence regarding these claims.
