Within his freshly published personal account, named Ithaki, the former prime minister Tsipras pulls no punches while he revisits the turbulent period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras appointed the unorthodox academic Yanis Varoufakis as his treasury head primarily due to the latter's worldwide fame and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, truthfully, more like a star and less of an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader suggests how Varoufakis had his own agenda that included promoting his books as well as experimenting with his game theories using Greece instead of truly fighting for the country's economic stability.
Tsipras wrote that the talks to avoid bankruptcy became “not only a method of achieving a better deal for the country. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, the country found itself dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future and those harsh austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a public vote, an action which plunged the EU into a further existential crisis.
Even though the vote was won decisively by voters against austerity, Tsipras had little option but to ignore the result then agree to a bailout package with creditors that proved to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included creating a parallel currency and issuing coupons to pensioners, Tsipras knew that it was the end questioning him: “Is this for real?”
Lasting Criticism
Within the book, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He also wrote that his confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This retelling of history has been met with fury along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
