Within his freshly published personal account, called Ithaki, the former prime minister Tsipras pulls no punches while he revisits that chaotic period of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, he selected the unorthodox academic Yanis Varoufakis as the finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, actually, more of a star and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief had his own motives that involved advancing Varoufakis's publications as well as testing out his game theories using the nation rather than genuinely advocating its financial survival.
He explained that the talks to prevent bankruptcy were “not only a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line was both Greece's destiny and the harsh austerity policies demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, the punitive conditions were subjected to a popular referendum, a move that threw Europe into deeper crisis of identity.
Although the vote was carried resoundingly by those against the cuts, Tsipras was forced to ignore the result then negotiate a bailout package from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … it seemed he relished his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency and distributing vouchers to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras asserts how his former ally had proved himself “unfit for a deal that required intricate and delicate handling.”
He also claimed that his confrontational approach left him more and more alone among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
