In a recently unveiled memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on the chaotic era during Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras chose that maverick economist Yanis Varoufakis as the finance minister primarily due to the latter's global profile along with Varoufakis's “extremely attractive” skills as a speaker.
“He was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges how Varoufakis had his own agenda which involved advancing his books and experimenting with his own economic models using Greece instead of genuinely advocating its economic stability.
He explained how the negotiations to prevent insolvency became “not just a method of achieving improved terms for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself perilously on the brink of leaving the eurozone.
At stake was both the country's future but also the harsh cutbacks demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the excoriating conditions were subjected to a popular referendum, a move which plunged the EU into further existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister was forced but to reject its outcome and negotiate a bailout package with creditors that turned out to be tougher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author asserts how his former ally demonstrated himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
This retelling of history has been met with fury and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
