Within his newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back as he examines that turbulent era during Greece's debt drama.
A Controversial Appointment
As per Tsipras's recollections, Tsipras chose that maverick academic Yanis Varoufakis to be the finance minister largely because of the latter's international reputation and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more like a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis had a personal agenda which involved advancing his publications as well as testing out his own theories using Greece rather than genuinely fighting for its financial survival.
Tsipras explained that the negotiations to stave off bankruptcy became “not only a method to secure improved terms for the country. They were an experiment, an historic chance to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid tense discussions, Greece found itself dangerously on the brink of leaving the eurozone.
At stake lay both the country's destiny and the punishing austerity policies demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were subjected to a public vote, an action which threw Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, the prime minister had little option to reject its outcome and agree to a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who appeared on the covers of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a contingency plan that included creating a secondary currency and distributing coupons to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
He further wrote how Varoufakis's aggressive style made him more and more alone among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of history has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
