Within his freshly published memoir, named Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the turbulent era of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras selected the maverick academic Yanis Varoufakis to be the finance minister primarily because of the latter's global profile along with his highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief had a personal agenda that included promoting his books and testing out his economic models using the nation rather than genuinely fighting for the country's financial survival.
He noted how the talks to avoid insolvency became “not only a method to secure improved terms for Greece. They became an experiment, an historic chance to demonstrate the validity of his theories.”
High-Stakes Talks
During tense negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake was both Greece's future and the harsh austerity policies required in return for rescue loans by international creditors.
Failed Alternatives
Attempts to secure financing from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive conditions were put to a popular referendum, a move which threw Europe into deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome and agree to a bailout package from creditors which turned out to be tougher.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras knew that it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
He also wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
