Within his newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
A Controversial Choice
In Tsipras's account, Tsipras selected that unorthodox economist Varoufakis to be the finance minister mainly due to his international reputation along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, actually, more like a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief had his own motives which involved promoting Varoufakis's publications and testing out his own game theories on Greece rather than genuinely fighting for its economic stability.
He noted that the talks to stave off insolvency became “not only a method to secure improved terms for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the single currency area.
At stake lay both Greece's destiny and those severe austerity measures demanded in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find funds elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
That summer, those excoriating conditions were subjected to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders which proved to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for a deal that required complex and delicate management.”
Tsipras also claimed that his aggressive style made him increasingly isolated among peers, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
