Within his newly released memoir, named Ithaki, the former premier Tsipras does not hold back as he revisits the turbulent era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose that maverick academic Yanis Varoufakis to be his finance minister primarily because of his international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more like a star and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed a personal agenda that included promoting Varoufakis's publications as well as experimenting with his own game theories on Greece rather than genuinely fighting for its economic stability.
He noted how those discussions to stave off insolvency became “not only a way to secure a better deal for Greece. They became a test, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During tense discussions, the country came dangerously close to exiting the single currency area.
At stake was both the country's destiny but also the harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to find funds elsewhere, including an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, those harsh bailout terms were subjected to a public vote, an action that threw Europe into deeper existential crisis.
Even though the vote was carried decisively by those against austerity, Tsipras was forced to ignore the result and negotiate a bailout package from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After the minister outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how his former ally demonstrated himself to be “unfit for an agreement demanding complex and delicate management.”
Tsipras also claimed how his confrontational style made him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
This account of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
