In a recently unveiled personal account, called Ithaki, the ex- leader Tsipras pulls no punches while he reflects on the chaotic era of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras appointed the unorthodox economist Varoufakis as his treasury head primarily due to his worldwide fame along with his very persuasive abilities as a speaker.
“He was, actually, more of a celebrity and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had his own motives that involved advancing his books as well as experimenting with his own economic models on Greece rather than genuinely fighting for its financial survival.
Tsipras wrote that the talks to stave off insolvency became “not just a method to secure improved terms for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster discussions, the country came dangerously close to leaving the eurozone.
At stake lay both the country's future but also the severe austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Efforts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a popular referendum, a move that threw the EU into a deeper crisis of identity.
Even though the vote was carried decisively by those against the cuts, the prime minister was forced but to reject its outcome then negotiate a bailout package with creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a backup strategy involving creating a parallel currency as well as distributing coupons to retirees, the leader said he realised that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how his former ally had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
This retelling of events has been met with anger along with shock in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
