Within his newly released memoir, named Ithaki, the former premier Tsipras pulls no punches as he reflects on the chaotic era of Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, he chose that unorthodox academic Varoufakis to be the treasury head largely due to the latter's international reputation and his highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a star rather than an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras claims that his finance chief possessed his own motives that involved advancing his publications as well as testing out his economic models using Greece rather than truly advocating the country's economic stability.
Tsipras noted that the negotiations to prevent bankruptcy became “not just a method of achieving improved terms for the country. They became a test, an historic chance to prove the truth of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, the country found itself dangerously close to exiting the single currency area.
At stake was not only Greece's destiny and the punishing cutbacks required in return for bailout funds from foreign lenders.
Failed Options
Attempts to find funds from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the referendum was won resoundingly by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package from creditors which turned out to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, the author asserts how Varoufakis demonstrated himself “unfit for an agreement that required complex and sensitive management.”
He further wrote how Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
