Within his freshly published memoir, titled Ithaki, the former prime minister Tsipras does not hold back while he examines that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, he appointed the unorthodox economist Varoufakis to be his treasury head primarily because of the latter's worldwide fame and Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, actually, more like a star rather than an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief possessed his own agenda that involved advancing Varoufakis's books as well as testing out his game theories on Greece rather than truly advocating the country's financial survival.
Tsipras noted that the negotiations to stave off bankruptcy were “not just a method of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came dangerously close to exiting the single currency area.
At stake lay both Greece's future and the severe cutbacks required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move which threw Europe into a further existential crisis.
Although the vote was carried decisively by those who opposed austerity, the prime minister was forced but to ignore the result then agree to a rescue deal with creditors that proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he relished his new role.”
When the minister proposed a backup strategy that included creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised that it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts that his former ally had proved himself to be “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach made him more and more alone among peers, endangered the country, while assisted hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
