In a freshly published memoir, named Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on that turbulent period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's version, Tsipras appointed the maverick economist Varoufakis to be his treasury head largely due to his global profile and his very persuasive skills when it came to public orator.
“He was, in reality, more of a star rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had a personal agenda which included promoting Varoufakis's publications as well as testing out his own theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras wrote how those negotiations to prevent bankruptcy became “not just a method of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of his ideas.”
Critical Talks
During tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also the punishing austerity policies demanded in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were put to a public vote, an action which threw the EU into deeper existential crisis.
Although the referendum was carried resoundingly by voters against austerity, Tsipras was forced but to reject its outcome and agree to a bailout package from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the book, the author asserts that Varoufakis had proved himself “unfit for a deal that required complex and delicate management.”
Tsipras also claimed that his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has provoked anger along with stunned disbelief among certain groups, whereas the former minister has kept a deafening silence regarding these claims.
