In a freshly published personal account, titled Ithaki, the ex- premier Tsipras pulls no punches as he revisits that chaotic era during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's recollections, he chose that maverick academic Yanis Varoufakis to be his finance minister primarily because of his worldwide fame and his “extremely attractive” skills as a communicator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis had his own motives that involved promoting Varoufakis's books as well as experimenting with his theories using the nation rather than genuinely fighting for the country's economic stability.
Tsipras wrote how those negotiations to prevent bankruptcy became “not just a way to secure improved terms for the country. They were an experiment, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to exiting the single currency area.
At stake was both the country's future but also those harsh cutbacks required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those harsh conditions were put to a public vote, a move that plunged Europe into a deeper crisis of identity.
Even though the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders that proved to be more severe.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who drew publicity, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis proposed a contingency plan involving creating a parallel currency and distributing vouchers to pensioners, Tsipras knew it was game over questioning him: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts that Varoufakis had proved himself to be “unfit for a deal that required complex and delicate management.”
Tsipras further wrote how his confrontational style left him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger along with stunned disbelief in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
