In a newly released memoir, named Ithaki, the ex- premier Tsipras does not hold back while he revisits that turbulent period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, he chose the maverick economist Varoufakis as the treasury head mainly due to the latter's global profile along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a personality and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief had a personal motives which involved promoting his publications and experimenting with his theories using the nation rather than genuinely advocating the country's economic stability.
He wrote that those negotiations to avoid bankruptcy were “not only a way of achieving improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During volatile negotiations, Greece came perilously close to leaving the eurozone.
At stake was not only Greece's destiny but also those punishing austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Although the referendum was won decisively by those against the cuts, Tsipras had little option to reject its outcome and agree to a bailout package from foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included creating a parallel currency as well as issuing coupons to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author concludes how his former ally had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras further wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The account of history has provoked anger along with shock among certain groups, whereas Varoufakis has maintained a deafening silence regarding these claims.
