Within his freshly published memoir, named Ithaki, the ex- premier Tsipras pulls no punches while he revisits that turbulent era of Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, he appointed the unorthodox economist Yanis Varoufakis as the treasury head largely because of his global profile and his “extremely attractive” skills as a public orator.
“He was, actually, more of a personality and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges that his finance chief had a personal agenda which included promoting Varoufakis's books and testing out his own theories using the nation rather than truly advocating its economic stability.
Tsipras wrote how those talks to prevent bankruptcy became “not just a method of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously close to exiting the single currency area.
At stake was not only Greece's future but also those harsh austerity measures demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, an action that threw the EU into deeper crisis of identity.
Although the referendum was carried decisively by those against austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with creditors which turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan involving creating a secondary currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate handling.”
He further wrote how his confrontational style made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
