In a newly released memoir, named Ithaki, the ex- premier Tsipras does not hold back while he revisits that turbulent era of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's version, Tsipras chose that unorthodox economist Varoufakis as his finance minister primarily because of his global profile along with Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief had a personal motives that involved advancing his publications and experimenting with his theories using the nation instead of genuinely advocating its economic stability.
He noted how those talks to avoid bankruptcy were “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay not only Greece's future and the punishing austerity policies required in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option but to reject its outcome and agree to a bailout package with creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, the author asserts that Varoufakis demonstrated himself to be “unfit for an agreement that required complex and delicate management.”
He further wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
This retelling of events has provoked anger and stunned disbelief among certain groups, while Varoufakis has kept a deafening silence regarding these claims.
