In a recently unveiled memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he examines that turbulent era of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras selected that maverick economist Yanis Varoufakis as his treasury head largely due to the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“He was, in reality, more like a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had his own agenda that included advancing Varoufakis's publications as well as experimenting with his own theories on Greece rather than truly advocating the country's economic stability.
Tsipras noted that those talks to stave off bankruptcy became “not just a method to secure improved terms for Greece. They were an experiment, an historic chance to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was both the country's destiny and those harsh cutbacks required in return for financial aid from international creditors.
Failed Options
Efforts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, the excoriating bailout terms were put to a public vote, an action which threw the EU into a deeper existential crisis.
Although the referendum was carried resoundingly by those against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, the leader knew it was the end questioning him: “Are you serious?”
Enduring Criticism
In the book, the author asserts that Varoufakis had proved himself “unfit for a deal that required intricate and delicate handling.”
Tsipras further wrote that his confrontational style left him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
