Within his recently unveiled memoir, named Ithaki, the ex- leader Tsipras spares no criticism as he examines that chaotic era of Greece's debt drama.
A Controversial Appointment
As per the ex-PM's account, Tsipras selected that unorthodox academic Varoufakis as his finance minister mainly due to his international reputation along with his highly compelling abilities as a communicator.
“He was, in reality, more of a star rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis had his own agenda that involved advancing his books as well as experimenting with his theories using Greece instead of truly advocating its financial survival.
He wrote that those negotiations to avoid insolvency were “not just a way of achieving a better deal for the country. They were a test, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line lay both the country's future and those harsh austerity policies required in return for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the excoriating conditions were subjected to a public vote, a move which plunged Europe into further existential crisis.
Even though the referendum was won decisively by voters against the cuts, Tsipras had little option to ignore the result then negotiate a rescue deal from creditors that turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over questioning him: “Are you serious?”
Enduring Criticism
In the book, Tsipras asserts that his former ally demonstrated himself “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras further claimed how his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating Grexit.
The account of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
