In a freshly published memoir, titled Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on the chaotic era during Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, he appointed the unorthodox economist Yanis Varoufakis to be the treasury head primarily because of the latter's worldwide fame and his highly compelling skills as a speaker.
“He was, actually, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims how his finance chief possessed a personal agenda that involved promoting Varoufakis's books as well as testing out his own theories using Greece instead of truly advocating its economic stability.
Tsipras noted that those negotiations to avoid insolvency were “not just a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During volatile discussions, Greece found itself dangerously close to leaving the eurozone.
At stake was both the country's future but also the harsh austerity measures demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
That summer, the excoriating conditions were put to a public vote, an action which plunged Europe into deeper crisis of identity.
Although the referendum was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a bailout package from creditors which proved to be more severe.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency and distributing vouchers to retirees, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also claimed that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with stunned disbelief among certain groups, whereas the former minister has kept a deafening silence on the matter.
