In a recently unveiled personal account, titled Ithaki, the former leader Tsipras does not hold back as he examines that turbulent era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, Tsipras selected that maverick academic Yanis Varoufakis to be the treasury head mainly because of the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” recalled Tsipras.
Clashing Priorities
The former leader alleges that Varoufakis had a personal agenda that included advancing Varoufakis's books and experimenting with his theories using the nation rather than truly fighting for its financial survival.
Tsipras wrote that those discussions to avoid insolvency became “not just a method of achieving improved terms for Greece. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, the country found itself dangerously close to exiting the eurozone.
At stake lay not only the country's destiny and the severe austerity measures demanded in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were subjected to a public vote, a move which threw the EU into deeper existential crisis.
Even though the vote was won resoundingly by those against the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how his former ally demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
Tsipras further wrote how his aggressive approach made him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
The retelling of events has provoked anger and stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
