In a newly released personal account, titled Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the chaotic period during Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, he chose the unorthodox academic Yanis Varoufakis to be his finance minister mainly due to his international reputation and Varoufakis's very persuasive skills as a speaker.
“He was, actually, more like a personality and less of an economist,” stated the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief possessed his own motives which involved advancing his books as well as testing out his own game theories on Greece rather than truly fighting for its economic stability.
Tsipras noted that the talks to avoid bankruptcy were “not just a method to secure improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
Amid tense negotiations, Greece came dangerously close to leaving the single currency area.
On the line was not only Greece's destiny and the punishing austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were put to a public vote, a move that threw the EU into a further existential crisis.
Although the vote was carried resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and agree to a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing coupons to retirees, the leader said he realised that it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras also claimed how Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating Grexit.
This account of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
