Within his recently unveiled personal account, called Ithaki, the former premier Tsipras does not hold back while he examines the chaotic period of Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, Tsipras chose that maverick economist Varoufakis to be the treasury head mainly due to the latter's international reputation along with his highly compelling skills when it came to public orator.
“He was, in reality, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis had a personal agenda that involved advancing his publications and experimenting with his own economic models using Greece instead of genuinely fighting for its financial survival.
Tsipras noted how the discussions to stave off insolvency were “not just a way to secure improved terms for the country. They were a test, a monumental chance to prove the validity of his theories.”
High-Stakes Negotiations
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
On the line lay both Greece's destiny and those harsh austerity measures demanded in return for bailout funds by international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into further existential crisis.
Although the referendum was carried decisively by those against austerity, Tsipras had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and distributing vouchers to retirees, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for an agreement that required complex and delicate management.”
Tsipras further wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and helped hardliners that were advocating a Greek exit from the euro.
The account of events has been met with fury along with shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.
