Within his newly released personal account, named Ithaki, the ex- prime minister Tsipras does not hold back while he examines that turbulent period of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's recollections, Tsipras chose the maverick economist Varoufakis to be his treasury head primarily due to his international reputation along with his highly compelling abilities as a speaker.
“In reality, he was, in reality, more like a personality and less of an economist,” stated Tsipras.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own motives which included promoting Varoufakis's books as well as experimenting with his own economic models on Greece rather than genuinely advocating its financial survival.
He wrote how those negotiations to prevent bankruptcy were “not just a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Talks
During tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay not only Greece's destiny and those severe austerity policies demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, including a desperate plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, the harsh conditions were put to a public vote, an action which threw the EU into a further crisis of identity.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing coupons to retirees, the leader knew it was game over questioning him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for a deal that required complex and sensitive management.”
He also wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, while assisted hawks who were advocating Grexit.
This account of history has been met with fury and shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
