In a newly released memoir, titled Ithaki, the former prime minister Tsipras does not hold back while he reflects on the turbulent period during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he selected that unorthodox academic Yanis Varoufakis to be the treasury head largely because of the latter's worldwide fame along with his highly compelling abilities as a communicator.
“He was, actually, more like a celebrity rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own agenda that included promoting Varoufakis's publications and testing out his economic models on the nation rather than truly advocating the country's economic stability.
He noted how those negotiations to avoid insolvency became “not only a method to secure a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake was not only the country's future and the punishing austerity measures demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move which threw Europe into further crisis of identity.
Although the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced but to ignore the result and agree to a rescue deal with foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When the minister proposed a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes how his former ally demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
Tsipras further claimed how his aggressive style made him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for Grexit.
This account of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
