In a freshly published personal account, called Ithaki, the ex- premier Tsipras spares no criticism while he reflects on the chaotic period during Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, he appointed the maverick economist Yanis Varoufakis as his treasury head largely because of the latter's international reputation and Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, in reality, more like a star rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed his own motives that involved advancing his publications as well as experimenting with his theories on the nation instead of genuinely advocating its financial survival.
Tsipras noted that those talks to prevent bankruptcy were “not only a method of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, Greece came dangerously on the brink of exiting the single currency area.
On the line lay not only the country's destiny and those harsh cutbacks required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive conditions were put to a popular referendum, an action which plunged the EU into further crisis of identity.
Even though the vote was carried decisively by those against austerity, the prime minister was forced to ignore the result and agree to a bailout package from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
He also wrote how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
This retelling of history has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
