In a freshly published personal account, named Ithaki, the former premier Tsipras pulls no punches as he examines the turbulent era during Greece's debt drama.
A Controversial Choice
In the ex-PM's account, he appointed that unorthodox economist Yanis Varoufakis to be the treasury head largely because of his global profile along with his “extremely attractive” skills as a public orator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal agenda which involved promoting Varoufakis's publications as well as testing out his economic models on the nation instead of truly fighting for the country's financial survival.
Tsipras noted how the talks to avoid bankruptcy were “not just a way of achieving a better deal for the country. They were a test, an historic chance to prove the truth of his ideas.”
High-Stakes Talks
Amid tense discussions, the country found itself dangerously close to leaving the single currency area.
On the line lay both the country's destiny and those severe austerity policies required in exchange for bailout funds by international creditors.
Failed Options
Attempts to secure funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, a move which threw Europe into a deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal with creditors which proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included creating a parallel currency and issuing coupons to pensioners, Tsipras knew that it was game over and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The retelling of events has provoked fury along with shock in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
