In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on the turbulent era during Greece's debt drama.
An Unconventional Appointment
As per Tsipras's version, he chose the maverick economist Varoufakis to be the finance minister mainly due to the latter's international reputation and Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims that his finance chief had a personal agenda which included promoting Varoufakis's books and testing out his theories using Greece instead of genuinely fighting for its economic stability.
He wrote how the negotiations to stave off bankruptcy were “not only a method of achieving a better deal for the country. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, the country found itself dangerously on the brink of leaving the single currency area.
On the line lay both Greece's destiny and the severe austerity measures required in return for rescue loans by international creditors.
Failed Options
Efforts to find financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that plunged Europe into deeper existential crisis.
Although the vote was carried resoundingly by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who drew publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras further wrote how his aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating Grexit.
The retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
