Within his newly released personal account, titled Ithaki, the ex- prime minister Tsipras does not hold back as he reflects on the turbulent era during Greece's debt drama.
A Controversial Appointment
As per Tsipras's version, Tsipras selected the unorthodox academic Yanis Varoufakis as the treasury head primarily due to the latter's international reputation along with his highly compelling abilities as a speaker.
“He was, truthfully, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges how Varoufakis had a personal agenda which included advancing Varoufakis's publications and experimenting with his own economic models on Greece instead of truly advocating its financial survival.
Tsipras noted that the negotiations to avoid bankruptcy were “not only a way of achieving improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself dangerously close to exiting the single currency area.
On the line was not only the country's future but also the punishing cutbacks demanded in return for bailout funds from foreign lenders.
Failed Options
Attempts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, those harsh bailout terms were subjected to a public vote, a move that threw Europe into a further existential crisis.
Even though the vote was carried decisively by voters against the cuts, Tsipras was forced but to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After the minister proposed a contingency plan involving establishing a secondary currency and distributing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also wrote that his aggressive approach left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
