In a freshly published memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he reflects on the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's version, he appointed that maverick economist Yanis Varoufakis to be his treasury head primarily because of the latter's international reputation along with his “extremely attractive” skills as a communicator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis possessed a personal agenda which involved advancing Varoufakis's publications as well as testing out his economic models using Greece rather than truly fighting for the country's economic stability.
He wrote that the discussions to prevent bankruptcy became “not just a method of achieving a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid tense negotiations, the country came perilously on the brink of exiting the eurozone.
On the line was both Greece's future but also the harsh cutbacks demanded in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
That summer, those punitive conditions were put to a popular referendum, a move that plunged Europe into deeper crisis of identity.
Although the referendum was carried decisively by those who opposed austerity, the prime minister was forced to ignore the result then agree to a rescue deal from creditors which proved to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
Tsipras further wrote that his aggressive approach made him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating Grexit.
This account of history has been met with fury along with shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet on the matter.
