Within his recently unveiled autobiography, named Ithaki, the former leader Tsipras does not hold back as he examines that chaotic period of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's recollections, he appointed the unorthodox economist Yanis Varoufakis as his finance minister mainly due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more of a personality rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief had his own agenda that involved advancing his publications and experimenting with his own game theories on Greece rather than truly fighting for the country's economic stability.
Tsipras noted how those discussions to prevent insolvency became “not only a method to secure improved terms for the country. They became a test, an historic chance to demonstrate the truth of his theories.”
Critical Talks
During tense discussions, the country found itself dangerously close to exiting the single currency area.
At stake was both the country's future and the severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to find financing elsewhere, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive conditions were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, the prime minister had little option to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving establishing a secondary currency and distributing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
Tsipras further wrote how his aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The account of history has provoked fury along with shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
