In a recently unveiled memoir, titled Ithaki, the ex- premier Tsipras does not hold back as he revisits the turbulent era of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he chose the unorthodox economist Yanis Varoufakis to be his treasury head mainly due to the latter's international reputation and Varoufakis's highly compelling skills as a communicator.
“In reality, he was, in reality, more of a personality and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief possessed a personal agenda that involved promoting his publications and testing out his theories using Greece instead of genuinely advocating its financial survival.
Tsipras explained how those negotiations to stave off insolvency became “not just a method of achieving a better deal for the country. They were an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was not only Greece's future and those harsh cutbacks required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into further existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, the prime minister had little option to ignore the result then agree to a bailout package from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the man who attracted media attention, who graced the front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
This retelling of history has been met with anger along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
