🔗 Share this article

In a freshly published personal account, called Ithaki, the ex- premier Tsipras pulls no punches while he examines that turbulent era during Greece's economic turmoil.

An Unconventional Appointment

According to the ex-PM's recollections, Tsipras chose the unorthodox economist Yanis Varoufakis to be his treasury head largely because of his international reputation along with Varoufakis's highly compelling skills as a speaker.

“In reality, he was, truthfully, more of a personality rather than an economist,” wrote Tsipras.

Conflicting Agendas

The former leader suggests how Varoufakis possessed his own agenda that included advancing his books and testing out his own economic models on Greece rather than genuinely fighting for its financial survival.

He explained that those discussions to prevent bankruptcy were “not just a way to secure a better deal for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”

High-Stakes Negotiations

During rollercoaster negotiations, the country came dangerously close to leaving the single currency area.

At stake was both the country's future and the punishing cutbacks demanded in return for financial aid from international creditors.

Unsuccessful Alternatives

Attempts to find financing from other sources, such as an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.

Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.

Referendum Followed by Reversal

In July 2015, the punitive conditions were subjected to a public vote, a move that plunged Europe into a further existential crisis.

Although the referendum was won decisively by those against austerity, Tsipras was forced but to ignore the result then negotiate a rescue deal with foreign lenders which proved to be even harsher.

Breaking Point

The ex-PM claimed how he began to doubt Varoufakis relatively soon.

“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … it seemed he relished the spotlight.”

When Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, the leader knew that it was the end questioning him: “Is this for real?”

Enduring Criticism

In the memoir, Tsipras concludes that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and sensitive handling.”

Tsipras also wrote that his aggressive style left him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.

The account of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.