Within his freshly published memoir, called Ithaki, the ex- premier Tsipras pulls no punches as he examines that chaotic era during Greece's debt drama.
A Controversial Appointment
In the ex-PM's recollections, Tsipras appointed that unorthodox academic Varoufakis as the finance minister largely because of his global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, truthfully, more of a star rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed his own motives which involved promoting Varoufakis's publications and testing out his own game theories using the nation instead of truly fighting for the country's financial survival.
He noted that those talks to avoid insolvency became “not only a method to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Talks
Amid volatile negotiations, the country found itself perilously on the brink of leaving the single currency area.
On the line was not only the country's future but also the harsh austerity measures demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find financing from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, a move which threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced to reject its outcome and negotiate a bailout package with foreign lenders which proved to be more severe.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a parallel currency and issuing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author asserts how his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive management.”
He further wrote how Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, and helped hardliners that were pushing for a Greek exit from the euro.
This account of events has provoked fury and shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
