In a freshly published memoir, called Ithaki, the ex- prime minister Tsipras does not hold back as he reflects on the turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, he chose the unorthodox economist Varoufakis to be his treasury head primarily due to his international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.
“He was, actually, more like a personality and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis possessed a personal agenda which included advancing his books as well as testing out his own theories using the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote how those talks to stave off insolvency became “not only a way to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, the country found itself perilously on the brink of leaving the eurozone.
On the line lay not only the country's future and those harsh austerity policies required in exchange for financial aid from foreign lenders.
Failed Options
Efforts to secure funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were subjected to a public vote, an action that plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal from creditors which proved to be more severe.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who drew publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts how his former ally demonstrated himself “unsuitable for an agreement that required complex and delicate management.”
He further wrote how his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were advocating a Greek exit from the euro.
The account of history has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
