In a freshly published memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that chaotic era of Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, Tsipras appointed the maverick economist Varoufakis to be his treasury head primarily due to his global profile along with Varoufakis's “extremely attractive” abilities when it came to speaker.
“He was, in reality, more of a celebrity rather than an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader alleges how Varoufakis possessed a personal agenda which involved promoting his publications as well as experimenting with his own economic models on Greece instead of genuinely fighting for its economic stability.
Tsipras noted that the negotiations to stave off insolvency became “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to prove the validity of his theories.”
Critical Negotiations
During tense discussions, the country found itself dangerously close to exiting the eurozone.
On the line lay both the country's future and the harsh cutbacks required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a public vote, a move which threw the EU into a further crisis of identity.
Even though the vote was won resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome then agree to a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency and issuing vouchers to retirees, the leader said he realised it was the end and asked him: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal that required complex and sensitive management.”
He further claimed that his confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for Grexit.
This account of events has provoked fury and shock in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
