In a newly released memoir, called Ithaki, the former premier Tsipras spares no criticism as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's account, Tsipras appointed the maverick economist Varoufakis to be the finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more of a star and less of an economic expert,” stated the 51-year-old.
Conflicting Agendas
Tsipras suggests how his finance chief possessed his own motives that involved promoting his publications and experimenting with his theories on the nation instead of truly fighting for its economic stability.
Tsipras noted that those negotiations to prevent insolvency were “not only a way to secure improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line lay not only Greece's future and those harsh cutbacks demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that threw the EU into a further existential crisis.
Even though the vote was carried decisively by those against austerity, Tsipras had little option to ignore the result then negotiate a bailout package with creditors that turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts how his former ally had proved himself to be “unfit for a deal that required complex and delicate handling.”
Tsipras also wrote that his aggressive approach left him more and more alone among peers, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
