In a newly released memoir, named Ithaki, the former prime minister Tsipras spares no criticism as he revisits the chaotic era during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's account, he appointed the unorthodox economist Varoufakis as his treasury head mainly due to the latter's international reputation and Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, actually, more of a celebrity and less of an economic expert,” stated Tsipras.
Clashing Priorities
The former leader claims that his finance chief possessed his own agenda which involved promoting Varoufakis's publications and testing out his economic models on Greece instead of truly advocating its economic stability.
Tsipras wrote how the negotiations to avoid insolvency became “not just a method to secure a better deal for Greece. They were a test, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country came perilously close to exiting the single currency area.
On the line was not only the country's destiny and those severe austerity policies demanded in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a popular referendum, an action that threw Europe into further crisis of identity.
Although the referendum was carried resoundingly by voters against the cuts, the prime minister had little option but to reject its outcome then negotiate a rescue deal with creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency as well as issuing vouchers to pensioners, the leader knew that it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement that required intricate and sensitive management.”
He further claimed how Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The account of history has provoked fury along with shock among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
