In a newly released memoir, titled Ithaki, the ex- prime minister Tsipras does not hold back while he revisits that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's version, he chose the unorthodox academic Yanis Varoufakis to be the treasury head mainly due to the latter's global profile along with his highly compelling skills when it came to public orator.
“He was, truthfully, more of a star rather than an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief possessed his own agenda which included advancing his publications and testing out his own economic models using the nation rather than truly advocating its financial survival.
He noted how those talks to avoid insolvency became “not just a method of achieving improved terms for the country. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During rollercoaster discussions, Greece found itself dangerously close to leaving the eurozone.
At stake lay both Greece's future but also those severe austerity measures required in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that threw the EU into a further existential crisis.
Although the vote was won decisively by those who opposed the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how his former ally had proved himself to be “unfit for an agreement demanding intricate and delicate handling.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hawks who were advocating Grexit.
The retelling of history has been met with anger and shock among certain groups, whereas the former minister has maintained a deafening silence on the matter.
