In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on that chaotic era of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's recollections, Tsipras appointed that maverick academic Varoufakis to be the treasury head primarily because of the latter's global profile and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that his finance chief had his own motives which involved advancing his publications and testing out his economic models on the nation rather than genuinely advocating its economic stability.
He noted that the talks to stave off bankruptcy were “not only a way of achieving improved terms for the country. They were a test, an historic chance to demonstrate the validity of his ideas.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself perilously on the brink of leaving the eurozone.
On the line was not only Greece's future but also the severe austerity measures demanded in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, such as a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those punitive conditions were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Although the vote was carried decisively by voters who opposed the cuts, Tsipras had little option but to reject its outcome and negotiate a rescue deal with foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency and distributing vouchers to retirees, Tsipras knew it was the end questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
He further wrote that Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief in some quarters, while the former minister has so far kept a conspicuous quiet regarding these claims.
