In a recently unveiled memoir, called Ithaki, the former leader Tsipras spares no criticism while he examines that turbulent era during Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, Tsipras appointed the maverick economist Varoufakis as the treasury head primarily because of the latter's worldwide fame along with his very persuasive abilities as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economist,” stated the 51-year-old.
Conflicting Agendas
The former leader claims how Varoufakis possessed a personal motives that included promoting Varoufakis's publications and testing out his own theories using Greece rather than genuinely fighting for the country's financial survival.
Tsipras wrote that the negotiations to avoid bankruptcy were “not just a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, Greece came perilously on the brink of exiting the single currency area.
At stake was both the country's destiny but also those severe austerity measures demanded in return for bailout funds from international creditors.
Failed Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a public vote, an action that plunged the EU into a deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome and negotiate a bailout package from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy involving establishing a parallel currency and issuing coupons to retirees, the leader said he realised it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, the author asserts how Varoufakis had proved himself “unsuitable for an agreement that required intricate and delicate handling.”
He further wrote how Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger and stunned disbelief among certain groups, whereas the former minister has kept a deafening silence regarding these claims.
