In a recently unveiled memoir, called Ithaki, the former leader Tsipras pulls no punches while he revisits that chaotic era of Greece's economic turmoil.
A Controversial Choice
In Tsipras's recollections, Tsipras chose the unorthodox academic Yanis Varoufakis to be his finance minister largely due to his global profile and his highly compelling skills as a speaker.
“He was, actually, more of a star and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis possessed a personal agenda that included promoting his books as well as testing out his economic models using Greece instead of truly fighting for its economic stability.
Tsipras explained that those negotiations to avoid insolvency were “not only a way to secure improved terms for the country. They became a test, an historic opportunity to prove the validity of his theories.”
Critical Talks
Amid tense discussions, the country came perilously on the brink of exiting the eurozone.
At stake was not only the country's destiny but also the harsh cutbacks required in return for financial aid by international creditors.
Failed Options
Attempts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those harsh conditions were put to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the vote was won resoundingly by voters who opposed austerity, the prime minister was forced to ignore the result and agree to a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
After the minister outlined a contingency plan involving creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive management.”
He also wrote that his confrontational approach made him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
