In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he revisits the chaotic era during Greece's economic turmoil.
An Unconventional Choice
In Tsipras's recollections, Tsipras chose that unorthodox academic Yanis Varoufakis as the treasury head primarily due to his international reputation and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, actually, more like a personality rather than an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own agenda that involved promoting Varoufakis's publications and experimenting with his theories on Greece instead of genuinely advocating its economic stability.
He wrote how those talks to stave off insolvency became “not only a method to secure a better deal for the country. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During tense negotiations, the country came perilously close to exiting the eurozone.
At stake was both Greece's future and the harsh austerity policies required in exchange for bailout funds from foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, an action that threw the EU into further existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts how his former ally demonstrated himself to be “unfit for an agreement demanding complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This account of history has provoked fury and shock in some quarters, while the former minister has so far maintained a deafening silence on the matter.
