In a newly released memoir, named Ithaki, the ex- leader Tsipras does not hold back as he examines that chaotic era of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, he chose that maverick economist Yanis Varoufakis to be the treasury head largely due to his international reputation along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, truthfully, more like a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had his own motives that involved advancing Varoufakis's publications as well as testing out his own theories on the nation rather than genuinely advocating the country's financial survival.
Tsipras explained how those discussions to prevent bankruptcy became “not just a method to secure improved terms for the country. They became a test, a monumental chance to prove the validity of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line lay both Greece's future but also those severe austerity measures demanded in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, a move that plunged the EU into deeper existential crisis.
Even though the vote was won resoundingly by those against the cuts, Tsipras was forced but to ignore the result and agree to a bailout package from creditors which turned out to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency and issuing vouchers to retirees, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
He also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
