Within his freshly published memoir, named Ithaki, the former prime minister Tsipras spares no criticism as he examines that turbulent period of Greece's debt drama.
A Controversial Choice
In Tsipras's version, Tsipras selected the maverick economist Yanis Varoufakis to be the treasury head largely due to the latter's international reputation along with Varoufakis's highly compelling abilities as a public orator.
“He was, in reality, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own agenda that involved advancing Varoufakis's books as well as testing out his own economic models using the nation instead of truly advocating its financial survival.
Tsipras explained how the talks to prevent bankruptcy were “not only a method to secure improved terms for the country. They became a test, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came perilously close to exiting the eurozone.
At stake lay not only Greece's future but also the punishing cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, the excoriating conditions were put to a popular referendum, a move that plunged Europe into a deeper existential crisis.
Although the referendum was carried decisively by voters against austerity, the prime minister was forced but to reject its outcome then agree to a rescue deal from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted publicity, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and issuing coupons to pensioners, the leader said he realised it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and delicate management.”
He further wrote how his confrontational approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked fury and shock in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
