In a newly released personal account, titled Ithaki, the former prime minister Tsipras pulls no punches while he examines the chaotic period during Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's account, he chose that unorthodox academic Yanis Varoufakis to be the treasury head mainly because of the latter's international reputation along with his “extremely attractive” abilities as a public orator.
“He was, in reality, more of a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief had a personal motives which involved advancing Varoufakis's publications as well as testing out his own game theories on the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote how those discussions to avoid insolvency became “not only a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, the country found itself dangerously on the brink of exiting the single currency area.
On the line was both the country's destiny but also the punishing austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were put to a public vote, a move that threw the EU into deeper existential crisis.
Even though the vote was carried resoundingly by those who opposed austerity, Tsipras was forced to reject its outcome then agree to a rescue deal from foreign lenders that proved to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and distributing coupons to retirees, Tsipras knew that it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the book, the author asserts how Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
He further wrote that his confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with anger along with stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
