Within his freshly published personal account, named Ithaki, the former prime minister Tsipras does not hold back as he reflects on that turbulent era of Greece's debt drama.
A Controversial Appointment
In Tsipras's version, Tsipras appointed the maverick economist Yanis Varoufakis as the treasury head largely due to the latter's international reputation along with his very persuasive skills as a public orator.
“He was, truthfully, more like a star rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief had his own agenda which involved advancing his publications and testing out his economic models using Greece rather than truly advocating its economic stability.
He explained how those discussions to stave off bankruptcy became “not only a method to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of his economic theories.”
Critical Talks
During tense negotiations, Greece came perilously on the brink of leaving the single currency area.
At stake was not only the country's destiny and those severe cutbacks demanded in return for financial aid by international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including a desperate plea to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, the harsh bailout terms were put to a public vote, a move which plunged the EU into a further existential crisis.
Although the referendum was won decisively by those against the cuts, the prime minister was forced but to reject its outcome then agree to a bailout package with creditors that proved to be more severe.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, the leader said he realised that it was the end and asked him: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
He further claimed how his aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
