Within his recently unveiled personal account, called Ithaki, the ex- premier Tsipras does not hold back as he revisits that chaotic era during Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, Tsipras chose the unorthodox economist Varoufakis as his treasury head primarily due to the latter's worldwide fame along with Varoufakis's very persuasive skills as a speaker.
“He was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief possessed a personal agenda that involved promoting Varoufakis's books as well as testing out his own economic models on the nation rather than genuinely advocating its economic stability.
He wrote how those negotiations to prevent bankruptcy were “not just a way to secure a better deal for Greece. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
On the line was not only Greece's future but also those harsh austerity policies demanded in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that threw Europe into deeper crisis of identity.
Even though the vote was won resoundingly by voters who opposed austerity, the prime minister had little option but to ignore the result and agree to a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
Tsipras further wrote how his aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hardliners who were pushing for Grexit.
This account of events has provoked fury and shock among certain groups, whereas Varoufakis has maintained a deafening silence regarding these claims.
