In a newly released memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he examines the chaotic era of Greece's financial crisis.
A Controversial Choice
As per Tsipras's version, he appointed that unorthodox academic Varoufakis to be his treasury head largely due to the latter's global profile along with his highly compelling skills when it came to communicator.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims how his finance chief possessed his own agenda which included promoting Varoufakis's books as well as testing out his game theories using the nation instead of truly fighting for the country's economic stability.
Tsipras explained how the discussions to prevent insolvency became “not only a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to leaving the single currency area.
On the line lay both the country's destiny and those severe austerity policies required in return for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, an action which threw Europe into a further existential crisis.
Even though the vote was carried resoundingly by voters against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan that included creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and delicate management.”
He further wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hawks that were advocating Grexit.
This account of events has provoked anger along with shock in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
