In a freshly published memoir, called Ithaki, the former premier Tsipras pulls no punches while he revisits the turbulent era during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, he appointed the maverick academic Yanis Varoufakis as the finance minister primarily because of his worldwide fame along with his “extremely attractive” abilities as a communicator.
“In reality, he was, in reality, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief possessed a personal agenda that included advancing his publications as well as testing out his game theories on the nation instead of truly fighting for the country's economic stability.
Tsipras explained that the talks to stave off insolvency became “not just a method to secure improved terms for Greece. They were a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously close to exiting the eurozone.
At stake lay both the country's future but also those punishing cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a public vote, a move that plunged the EU into further existential crisis.
Even though the vote was won decisively by those who opposed the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
After Varoufakis proposed a contingency plan that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over and asked him: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras asserts how his former ally demonstrated himself to be “unfit for a deal that required complex and delicate management.”
Tsipras also claimed that his aggressive approach left him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
