Within his freshly published memoir, titled Ithaki, the former prime minister Tsipras does not hold back as he examines the turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he selected the unorthodox academic Yanis Varoufakis to be his treasury head primarily due to the latter's global profile and his very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims that Varoufakis possessed a personal agenda which included advancing Varoufakis's books as well as experimenting with his own theories on the nation instead of genuinely fighting for the country's economic stability.
He noted that those discussions to avoid insolvency were “not only a method to secure improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was both Greece's future and the punishing austerity policies required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were put to a public vote, a move which plunged the EU into further crisis of identity.
Although the vote was carried resoundingly by those who opposed the cuts, the prime minister had little option but to reject its outcome and agree to a bailout package with foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included creating a secondary currency and distributing vouchers to pensioners, the leader knew that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive management.”
He also claimed that his confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
The account of events has been met with anger and shock in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
