In a newly released memoir, called Ithaki, the former prime minister Tsipras pulls no punches as he revisits that turbulent period of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's version, he chose the unorthodox economist Varoufakis to be his treasury head primarily due to the latter's international reputation along with his “extremely attractive” abilities when it came to speaker.
“He was, actually, more like a star rather than an economist,” recalled Tsipras.
Clashing Priorities
The former leader alleges how his finance chief possessed a personal motives that involved promoting his books as well as experimenting with his own theories on the nation rather than genuinely advocating the country's economic stability.
Tsipras explained how the discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to leaving the eurozone.
At stake was both the country's future but also those harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were put to a public vote, an action that threw the EU into a further existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced but to reject its outcome then agree to a bailout package from creditors that proved to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author asserts that his former ally demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote how Varoufakis's confrontational approach left him more and more alone with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
