In a newly released personal account, named Ithaki, the former premier Tsipras does not hold back while he examines that chaotic era during Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, he chose that unorthodox economist Yanis Varoufakis as his finance minister primarily due to the latter's international reputation along with his “extremely attractive” skills as a speaker.
“He was, truthfully, more like a personality rather than an economist,” stated Tsipras.
Clashing Priorities
The former leader suggests how his finance chief had a personal motives that included advancing his books and experimenting with his own theories on Greece instead of truly fighting for its financial survival.
Tsipras noted how the negotiations to prevent bankruptcy were “not only a way to secure improved terms for the country. They became a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid volatile discussions, the country came perilously on the brink of leaving the single currency area.
At stake was both the country's destiny and those punishing austerity policies demanded in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to find financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that threw Europe into further existential crisis.
Although the referendum was carried decisively by those against austerity, the prime minister had little option but to ignore the result then negotiate a bailout package from creditors that proved to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, the leader said he realised that it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras also wrote that his aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
