Within his freshly published memoir, titled Ithaki, the ex- prime minister Tsipras spares no criticism as he examines that turbulent era of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras chose the unorthodox economist Yanis Varoufakis to be the finance minister largely because of his international reputation and Varoufakis's very persuasive skills when it came to speaker.
“He was, actually, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief had his own motives which involved promoting Varoufakis's books as well as testing out his own economic models on Greece instead of genuinely fighting for the country's financial survival.
He wrote how those discussions to stave off insolvency were “not only a method of achieving a better deal for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself dangerously close to leaving the single currency area.
On the line was not only the country's future and the harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Options
Attempts to secure funds from other sources, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that plunged the EU into a deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to ignore the result and negotiate a bailout package from creditors that turned out to be tougher.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
He also wrote that his aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked fury and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
