In a newly released memoir, named Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the turbulent era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's account, he appointed that maverick academic Yanis Varoufakis to be his treasury head mainly due to the latter's worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed his own agenda which included promoting his publications and experimenting with his economic models on Greece instead of genuinely advocating its economic stability.
He noted how those negotiations to stave off insolvency became “not only a method of achieving improved terms for the country. They were a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both Greece's future and the severe austerity policies demanded in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, a move which plunged the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by voters against austerity, the prime minister had little option to ignore the result then negotiate a rescue deal from creditors which proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency and distributing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He also wrote how his confrontational approach left him increasingly isolated among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
This retelling of history has been met with fury and shock in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
