Within his newly released personal account, named Ithaki, the former premier Tsipras spares no criticism while he reflects on the turbulent period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's version, he selected the maverick academic Yanis Varoufakis as the treasury head largely due to his worldwide fame along with his very persuasive abilities when it came to public orator.
“In reality, he was, truthfully, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief possessed a personal motives that involved advancing Varoufakis's publications as well as experimenting with his own economic models on Greece rather than genuinely fighting for its financial survival.
He explained that the negotiations to stave off bankruptcy were “not only a method of achieving improved terms for the country. They were a test, an historic opportunity to prove the validity of his theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to leaving the eurozone.
On the line was not only the country's destiny but also those harsh cutbacks required in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Assisting Greece was tantamount to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, a move which threw the EU into a further existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister had little option but to reject its outcome then agree to a rescue deal with creditors that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the man who attracted media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts that his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
He also claimed that Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were pushing for Grexit.
The retelling of events has been met with anger and shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
