In a freshly published memoir, named Ithaki, the ex- premier Tsipras pulls no punches as he revisits the turbulent era during Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, he appointed that maverick academic Varoufakis to be the treasury head mainly due to the latter's global profile along with his very persuasive abilities as a communicator.
“He was, actually, more like a personality rather than an economist,” stated Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had a personal motives which involved promoting Varoufakis's publications as well as experimenting with his own game theories using the nation rather than truly fighting for the country's economic stability.
Tsipras wrote how those negotiations to stave off insolvency were “not only a way of achieving a better deal for the country. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came perilously close to exiting the single currency area.
At stake was both Greece's destiny but also the severe austerity measures required in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, the harsh bailout terms were subjected to a public vote, an action which plunged Europe into further existential crisis.
Although the referendum was won decisively by those against the cuts, Tsipras was forced to ignore the result and agree to a rescue deal from creditors which proved to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency and distributing coupons to pensioners, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author asserts that his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”
He further wrote how Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
The retelling of history has provoked fury along with shock in some quarters, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
