In a newly released memoir, titled Ithaki, the ex- premier Tsipras does not hold back while he examines the turbulent period during Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, Tsipras selected that maverick economist Yanis Varoufakis to be his treasury head largely because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief had a personal motives that included advancing his publications and experimenting with his own theories using Greece rather than truly advocating its economic stability.
He explained that the negotiations to avoid insolvency became “not just a way of achieving a better deal for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously close to exiting the eurozone.
On the line lay both the country's destiny but also the severe cutbacks required in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive conditions were put to a public vote, an action that plunged the EU into deeper crisis of identity.
Although the vote was won decisively by voters against the cuts, Tsipras had little option to ignore the result and agree to a bailout package from creditors that turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras further wrote that his confrontational style made him more and more alone among peers, endangered the country, while assisted hawks who were pushing for Grexit.
The account of history has been met with fury along with stunned disbelief in some quarters, while the former minister has kept a deafening silence on the matter.
