Within his newly released memoir, titled Ithaki, the former leader Tsipras spares no criticism as he examines that chaotic era during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the maverick economist Yanis Varoufakis as his finance minister primarily because of his worldwide fame and Varoufakis's very persuasive skills as a public orator.
“In reality, he was, actually, more of a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
The former leader alleges that his finance chief possessed his own motives that included promoting Varoufakis's publications as well as testing out his own economic models using the nation rather than truly fighting for its financial survival.
Tsipras explained how the negotiations to avoid insolvency were “not just a way of achieving improved terms for the country. They were an experiment, an historic chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously close to exiting the eurozone.
At stake lay both the country's destiny but also those severe austerity measures demanded in return for financial aid from foreign lenders.
Failed Options
Attempts to find financing elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, an action which threw Europe into deeper crisis of identity.
Even though the referendum was carried resoundingly by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a bailout package with foreign lenders which turned out to be tougher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, Tsipras said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how his former ally demonstrated himself “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras also wrote that his aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This account of events has been met with anger along with shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
