Within his newly released personal account, named Ithaki, the ex- prime minister Tsipras spares no criticism as he examines the chaotic period of Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, he chose the unorthodox economist Yanis Varoufakis as his treasury head primarily because of his global profile along with Varoufakis's very persuasive abilities when it came to communicator.
“He was, in reality, more of a personality rather than an economist,” stated the 51-year-old.
Clashing Priorities
The former leader alleges that his finance chief had a personal motives which included promoting his publications and experimenting with his own theories on Greece instead of genuinely fighting for the country's economic stability.
Tsipras noted how those discussions to prevent bankruptcy were “not only a method of achieving improved terms for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
Critical Talks
During tense discussions, Greece found itself dangerously on the brink of leaving the eurozone.
At stake was both Greece's destiny but also the harsh austerity policies required in return for rescue loans from international creditors.
Failed Options
Attempts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Although the vote was won decisively by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal from creditors which turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for a deal demanding complex and sensitive handling.”
He further wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked fury and shock in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
