Within his newly released memoir, titled Ithaki, the ex- leader Tsipras pulls no punches as he revisits that chaotic era of Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, he chose that unorthodox economist Varoufakis to be his finance minister primarily because of his global profile along with his “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more like a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests how Varoufakis had his own agenda that included advancing Varoufakis's publications as well as experimenting with his economic models using Greece rather than truly advocating the country's economic stability.
He noted how the negotiations to avoid insolvency were “not only a way of achieving improved terms for the country. They became a test, an historic opportunity to demonstrate the truth of his ideas.”
Critical Negotiations
Amid tense negotiations, the country came perilously close to leaving the eurozone.
On the line lay not only Greece's destiny but also those punishing cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, an action which plunged Europe into further existential crisis.
Even though the referendum was won decisively by voters against austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew media attention, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, the leader said he realised it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself “unsuitable for a deal that required complex and sensitive management.”
Tsipras further wrote how his aggressive approach made him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This retelling of events has provoked fury and stunned disbelief among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
