In a newly released memoir, named Ithaki, the former prime minister Tsipras pulls no punches as he reflects on the chaotic period during Greece's debt drama.
A Controversial Choice
According to Tsipras's version, he appointed the maverick economist Varoufakis to be his treasury head mainly because of his international reputation and his “extremely attractive” skills when it came to public orator.
“He was, truthfully, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests how Varoufakis possessed a personal agenda which included promoting Varoufakis's books as well as testing out his economic models using the nation instead of genuinely advocating its financial survival.
Tsipras wrote how those talks to prevent bankruptcy were “not just a way to secure improved terms for the country. They were an experiment, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came dangerously close to exiting the eurozone.
At stake was not only Greece's destiny but also the punishing austerity policies required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a secondary currency and issuing coupons to retirees, the leader said he realised it was the end questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
The account of history has provoked fury along with shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
