In a newly released personal account, called Ithaki, the former premier Tsipras pulls no punches as he examines the turbulent period of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, Tsipras selected the unorthodox academic Yanis Varoufakis as his treasury head mainly due to his international reputation and his very persuasive abilities when it came to public orator.
“He was, truthfully, more like a personality and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras alleges how his finance chief possessed his own motives that involved promoting Varoufakis's publications and testing out his game theories using the nation instead of truly fighting for its financial survival.
Tsipras noted that those discussions to stave off insolvency became “not just a method of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
During tense discussions, the country came dangerously close to leaving the eurozone.
At stake lay not only the country's future and the harsh cutbacks required in exchange for bailout funds by foreign lenders.
Failed Options
Attempts to find funds elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, those punitive conditions were subjected to a popular referendum, an action which plunged the EU into a further crisis of identity.
Even though the referendum was won resoundingly by those against austerity, the prime minister had little option to ignore the result then agree to a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author asserts that his former ally had proved himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras also wrote how Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury along with shock in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
