Within his recently unveiled memoir, called Ithaki, the ex- premier Tsipras does not hold back while he revisits that turbulent period of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected that maverick economist Varoufakis as his treasury head largely due to the latter's international reputation along with Varoufakis's “extremely attractive” skills as a communicator.
“He was, truthfully, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader suggests how Varoufakis possessed his own agenda that included promoting his publications as well as experimenting with his own theories on the nation rather than truly fighting for the country's economic stability.
Tsipras noted that those negotiations to prevent bankruptcy became “not only a way of achieving a better deal for the country. They became a test, a monumental chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, the country came dangerously close to leaving the single currency area.
At stake lay not only the country's destiny and the severe austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and U-Turn
That summer, those excoriating conditions were subjected to a public vote, a move which threw Europe into further crisis of identity.
Although the referendum was carried decisively by those against austerity, Tsipras had little option to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed that 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 front pages of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to retirees, the leader knew it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally had proved himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He further claimed that his confrontational approach made him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury and shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
