In a freshly published memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches while he examines the turbulent period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's version, he chose that unorthodox academic Yanis Varoufakis to be his treasury head mainly because of his international reputation and Varoufakis's highly compelling abilities as a speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras claims how Varoufakis possessed his own motives that involved advancing Varoufakis's publications as well as testing out his own economic models on Greece instead of truly advocating its financial survival.
He explained how the discussions to avoid insolvency became “not just a way to secure improved terms for the country. They became an experiment, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously close to exiting the single currency area.
On the line was not only Greece's destiny but also the harsh cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase 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 in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, a move that threw the EU into further crisis of identity.
Although the vote was won decisively by voters who opposed the cuts, the prime minister was forced but to ignore the result and agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and distributing coupons to retirees, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were advocating Grexit.
The account of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
