Within his newly released memoir, named Ithaki, the ex- leader Tsipras pulls no punches as he revisits that turbulent period during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, he appointed that maverick economist Yanis Varoufakis to be the treasury head mainly because of the latter's worldwide fame and his “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader claims that his finance chief had his own agenda which involved advancing his books and testing out his theories on the nation instead of truly advocating its economic stability.
Tsipras explained that the negotiations to stave off insolvency were “not only a way to secure a better deal for the country. They became an experiment, an historic opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense discussions, Greece came perilously close to leaving the single currency area.
On the line was both the country's future and the severe austerity policies demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating conditions were put to a popular referendum, a move which plunged the EU into a deeper crisis of identity.
Even though the vote was carried decisively by voters against austerity, Tsipras had little option to ignore the result then agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally demonstrated himself “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote that his aggressive style left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and shock among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
