In a newly released memoir, titled Ithaki, the ex- premier Tsipras spares no criticism as he examines that turbulent era during Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected that unorthodox academic Yanis Varoufakis as his finance minister primarily because of the latter's global profile along with his “extremely attractive” skills as a public orator.
“He was, in reality, more of a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief possessed his own motives which included promoting his publications and testing out his economic models using the nation rather than truly fighting for the country's economic stability.
Tsipras noted that those discussions to avoid insolvency became “not only a method to secure improved terms for the country. They became an experiment, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country came perilously on the brink of exiting the single currency area.
On the line was both Greece's future but also those severe austerity policies required in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, the excoriating conditions were put to a public vote, a move that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who drew publicity, who graced the front pages of magazines the world over … it seemed he was enjoying his new role.”
After the minister outlined a backup strategy involving establishing a parallel currency and distributing coupons to pensioners, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author asserts that his former ally demonstrated himself “unsuitable for a deal demanding complex and delicate management.”
He further wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
