Within his freshly published personal account, named Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that turbulent era of Greece's debt drama.
A Controversial Choice
As per Tsipras's account, he selected that unorthodox academic Yanis Varoufakis to be his treasury head largely because of his international reputation and his “extremely attractive” skills as a public orator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal agenda which involved advancing his publications as well as testing out his own game theories using Greece instead of truly fighting for its economic stability.
He wrote that the talks to avoid bankruptcy became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came dangerously on the brink of exiting the single currency area.
On the line was both Greece's destiny but also the harsh austerity policies required in exchange for financial aid from international creditors.
Failed Options
Attempts to find financing from other sources, such as an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action which threw Europe into deeper existential crisis.
Although the vote was won decisively by voters against austerity, Tsipras was forced to ignore the result and negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency as well as distributing coupons to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that his former ally demonstrated himself to be “unfit for an agreement that required complex and sensitive handling.”
He further claimed how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for Grexit.
This retelling of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
