In a newly released personal account, named Ithaki, the former leader Tsipras pulls no punches while he revisits the chaotic period during Greece's debt drama.
A Controversial Choice
As per Tsipras's version, Tsipras chose that unorthodox economist Yanis Varoufakis as the finance minister primarily because of the latter's worldwide fame and his “extremely attractive” skills as a public orator.
“In reality, he was, actually, more like a celebrity rather than an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras claims how his finance chief possessed his own agenda which included advancing his books and testing out his economic models on Greece instead of genuinely fighting for its financial survival.
He noted how those negotiations to prevent bankruptcy were “not just a way of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was both the country's future but also those harsh cutbacks required in exchange for bailout funds from international creditors.
Failed Options
Attempts to secure financing from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move that plunged Europe into a further existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras was forced but to reject its outcome then agree to a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included creating a secondary currency and issuing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts how his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive management.”
He further claimed how Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked fury and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
