Within his recently unveiled memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on the turbulent era of Greece's economic turmoil.
An Unconventional Choice
As per Tsipras's account, he appointed the maverick academic Varoufakis as his treasury head largely due to the latter's global profile and Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, actually, more like a star and less of an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed a personal motives which involved promoting Varoufakis's publications and experimenting with his game theories using Greece rather than truly advocating its economic stability.
He explained that those discussions to stave off bankruptcy became “not only a method of achieving improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece found itself perilously on the brink of exiting the eurozone.
At stake was not only the country's future and the harsh austerity policies required in return for bailout funds from foreign lenders.
Failed Options
Efforts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a public vote, a move which threw the EU into a further existential crisis.
Although the referendum was carried decisively by those who opposed austerity, the prime minister had little option to ignore the result and negotiate a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and delicate management.”
Tsipras also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with anger and shock in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
