In a newly released personal account, called Ithaki, the former premier Tsipras spares no criticism while he revisits that turbulent era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, he selected that maverick economist Yanis Varoufakis to be his treasury head primarily because of his worldwide fame and his very persuasive skills when it came to speaker.
“In reality, he was, actually, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras claims how his finance chief had a personal motives which involved promoting his publications and experimenting with his theories using Greece rather than truly advocating the country's financial survival.
He wrote how those talks to stave off bankruptcy were “not just a method of achieving a better deal for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny and the harsh austerity measures demanded in return for bailout funds from foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal with foreign lenders which proved to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras knew that it was game over questioning him: “Are you serious?”
Lasting Criticism
In the book, the author concludes that his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras further claimed how his confrontational style left him more and more alone among peers, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
