In a newly released memoir, titled Ithaki, the ex- premier Tsipras does not hold back while he examines that turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, he selected the unorthodox academic Varoufakis as his finance minister mainly due to his international reputation and his highly compelling abilities as a communicator.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis possessed his own motives that included advancing his publications and experimenting with his economic models using the nation rather than genuinely fighting for its economic stability.
He noted how those talks to avoid insolvency were “not only a way to secure a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of his theories.”
Critical Talks
Amid rollercoaster negotiations, the country found itself dangerously close to exiting the single currency area.
On the line was both Greece's future but also those punishing austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, a move that plunged the EU into a further crisis of identity.
Although the referendum was carried decisively by those against austerity, Tsipras was forced but to reject its outcome then agree to a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts how his former ally had proved himself to be “unfit for an agreement demanding complex and sensitive management.”
He also wrote how his confrontational approach made him more and more alone among peers, put Greece at risk, while assisted hawks that were pushing for Grexit.
This retelling of history has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
