In a recently unveiled personal account, named Ithaki, the ex- prime minister Tsipras does not hold back while he examines that chaotic era of Greece's debt drama.
A Controversial Choice
According to Tsipras's version, he appointed that maverick economist Varoufakis to be the finance minister primarily because of the latter's worldwide fame along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, actually, more like a personality and less of an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had a personal motives which involved promoting Varoufakis's publications and testing out his game theories using Greece rather than genuinely fighting for the country's financial survival.
He wrote that those discussions to avoid bankruptcy were “not only a way of achieving improved terms for Greece. They became a test, an historic chance to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, Greece came perilously close to leaving the single currency area.
At stake was both Greece's destiny but also the harsh austerity measures required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those excoriating conditions were subjected to a popular referendum, a move which plunged the EU into deeper existential crisis.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal from creditors that turned out to be tougher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras knew that it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal demanding intricate and delicate management.”
He further claimed how Varoufakis's aggressive style left him more and more alone among peers, endangered the country, and assisted hardliners that were pushing for Grexit.
The retelling of events has been met with anger and stunned disbelief among certain groups, while Varoufakis has maintained a deafening silence on the matter.
