In a newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back as he revisits the turbulent period of Greece's financial crisis.
A Controversial Appointment
In Tsipras's version, Tsipras selected that maverick economist Varoufakis as the finance minister primarily due to his global profile along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims that his finance chief had a personal agenda which included advancing his books as well as experimenting with his own economic models on Greece instead of genuinely fighting for its economic stability.
Tsipras noted how the discussions to avoid insolvency became “not just a way to secure improved terms for Greece. They were an experiment, an historic chance to prove the truth of his economic theories.”
High-Stakes Talks
Amid tense discussions, Greece came dangerously close to leaving the eurozone.
On the line lay both the country's future and the severe cutbacks demanded in return for rescue loans from international creditors.
Failed Options
Efforts to find funds from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were put to a public vote, an action that threw Europe into a further existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Are you serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive handling.”
He further claimed how his confrontational approach made him more and more alone with colleagues, endangered the country, while helped hawks that were advocating a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
