In a newly released memoir, named Ithaki, the former leader Tsipras pulls no punches while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras chose that unorthodox economist Yanis Varoufakis to be his finance minister mainly because of his worldwide fame along with Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more like a personality rather than an economist,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis possessed his own motives which included promoting his books and experimenting with his economic models on Greece rather than genuinely fighting for the country's financial survival.
He noted that those negotiations to stave off bankruptcy became “not only a method of achieving improved terms for Greece. They became an experiment, a monumental chance to demonstrate the validity of his theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's destiny but also those harsh austerity policies demanded in return for bailout funds by international creditors.
Failed Options
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Even though the vote was carried decisively by those against austerity, the prime minister was forced to ignore the result and agree to a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a secondary currency and distributing vouchers to retirees, the leader knew it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
He further wrote how his confrontational style made him more and more alone with colleagues, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
This account of history has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
