In a newly released memoir, titled Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the turbulent period of Greece's financial crisis.
A Controversial Choice
As per Tsipras's recollections, he appointed the unorthodox economist Yanis Varoufakis to be the finance minister largely because of his worldwide fame and his highly compelling skills as a public orator.
“In reality, he was, truthfully, more of a star rather than an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how Varoufakis had a personal motives which involved promoting his books and experimenting with his theories on Greece rather than genuinely fighting for its financial survival.
Tsipras noted that the discussions to avoid insolvency were “not just a way of achieving a better deal for the country. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster discussions, the country came dangerously on the brink of exiting the eurozone.
At stake lay both Greece's destiny but also those harsh austerity policies demanded in return for rescue loans by international creditors.
Failed Options
Efforts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those punitive conditions were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Although the vote was carried resoundingly by those against austerity, Tsipras had little option to ignore the result and agree to a rescue deal with creditors that proved to be more severe.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy that included creating a parallel currency and issuing vouchers to pensioners, the leader knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that his former ally demonstrated himself to be “unfit for an agreement demanding complex and sensitive handling.”
He further claimed how his confrontational approach made him increasingly isolated among peers, endangered the country, while helped hawks that were advocating Grexit.
This retelling of events has provoked anger along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
