In a freshly published personal account, named Ithaki, the former prime minister Tsipras does not hold back as he reflects on the turbulent era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras selected the unorthodox academic Yanis Varoufakis as his treasury head mainly because of the latter's international reputation along with his highly compelling abilities when it came to public orator.
“He was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had a personal agenda which involved advancing Varoufakis's books as well as experimenting with his game theories using Greece instead of genuinely advocating the country's financial survival.
He explained that those negotiations to prevent insolvency were “not only a method to secure a better deal for the country. They became a test, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came dangerously close to exiting the single currency area.
At stake lay both Greece's future but also the punishing cutbacks demanded in return for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those excoriating conditions were subjected to a popular referendum, an action that plunged the EU into a further existential crisis.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option but to ignore the result then agree to a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included establishing a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes that his former ally had proved himself “unfit for a deal that required complex and sensitive handling.”
He also wrote how his aggressive approach made him more and more alone among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
