Within his recently unveiled memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that turbulent era of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's recollections, he selected that maverick economist Yanis Varoufakis as the treasury head largely because of the latter's global profile and Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, truthfully, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal motives that included advancing Varoufakis's books as well as experimenting with his economic models using Greece instead of truly advocating the country's economic stability.
He noted that the discussions to avoid bankruptcy were “not just a method of achieving improved terms for the country. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously close to leaving the eurozone.
At stake was not only Greece's destiny but also those punishing austerity policies required in return for rescue loans from foreign lenders.
Failed Options
Attempts to find financing from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were put to a public vote, a move that threw the EU into further crisis of identity.
Even though the vote was carried decisively by voters who opposed the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal with creditors which turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister outlined a contingency plan that included creating a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the book, the author concludes that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras also wrote how his aggressive style left him more and more alone among peers, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with anger along with stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
