Within his newly released memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that chaotic era of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, he selected that unorthodox economist Varoufakis as his treasury head mainly because of his worldwide fame and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief had a personal agenda which involved advancing his publications and experimenting with his own game theories on the nation rather than genuinely fighting for the country's economic stability.
He explained that the negotiations to stave off insolvency became “not only a way of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came dangerously on the brink of exiting the eurozone.
On the line was both the country's destiny but also those harsh cutbacks required in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a popular referendum, a move that plunged Europe into a further crisis of identity.
Although the vote was carried resoundingly by those who opposed the cuts, the prime minister had little option to reject its outcome and negotiate a rescue deal with creditors which turned out to be more severe.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras further claimed how his aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
