In a newly released autobiography, named Ithaki, the former premier Tsipras pulls no punches as he revisits that turbulent period during Greece's financial crisis.
An Unconventional Choice
In Tsipras's account, he appointed the maverick economist Varoufakis as his treasury head primarily due to his international reputation and his “extremely attractive” abilities when it came to communicator.
“In reality, he was, actually, more like a star and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief had his own motives that involved promoting Varoufakis's publications as well as testing out his own economic models on the nation instead of genuinely advocating its financial survival.
Tsipras explained how those discussions to avoid bankruptcy were “not just a way to secure improved terms for the country. They were a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also those punishing cutbacks demanded in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those harsh conditions were put to a public vote, a move that plunged Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister had little option but to ignore the result then negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy that included creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised that it was game over questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, the author asserts that his former ally demonstrated himself to be “unfit for a deal demanding complex and sensitive handling.”
Tsipras also wrote that his aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
