In a newly released personal account, called Ithaki, the former premier Tsipras does not hold back while he reflects on the chaotic period of Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, he selected that unorthodox academic Varoufakis as his finance minister largely because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities as a speaker.
“He was, in reality, more like a star and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief had his own agenda which included promoting Varoufakis's books and experimenting with his theories using the nation instead of genuinely fighting for the country's economic stability.
He explained that those discussions to prevent bankruptcy were “not just a way to secure improved terms for the country. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, Greece came dangerously close to exiting the eurozone.
On the line lay not only Greece's future but also those punishing cutbacks required in exchange for rescue loans by international creditors.
Failed Options
Attempts to find financing elsewhere, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, those excoriating bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the referendum was won resoundingly by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying his new role.”
After the minister proposed a contingency plan involving establishing a parallel currency and distributing coupons to retirees, the leader said he realised it was game over and asked him: “Are you serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras further claimed that his aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with anger and shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
