In a newly released memoir, called Ithaki, the ex- premier Tsipras pulls no punches as he revisits the turbulent era of Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, he appointed that unorthodox economist Varoufakis as the finance minister primarily because of his worldwide fame along with Varoufakis's “extremely attractive” abilities as a speaker.
“He was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
The former leader claims how his finance chief had a personal motives that included advancing his publications as well as experimenting with his economic models on Greece instead of truly advocating the country's financial survival.
Tsipras wrote how the discussions to stave off bankruptcy became “not just a way of achieving improved terms for Greece. They became an experiment, an historic opportunity to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously close to leaving the single currency area.
At stake was not only Greece's future but also those harsh austerity measures required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that threw the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister had little option to ignore the result and negotiate a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised that it was game over questioning him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes that Varoufakis had proved himself “unfit for an agreement that required intricate and delicate management.”
Tsipras further wrote that Varoufakis's confrontational approach made him more and more alone with colleagues, endangered the country, and helped hardliners that were advocating Grexit.
This account of history has provoked fury along with shock in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
