Within his recently unveiled memoir, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he chose that maverick academic Varoufakis as his treasury head largely due to his global profile along with his highly compelling abilities as a public orator.
“He was, actually, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader claims how Varoufakis possessed a personal agenda that involved advancing Varoufakis's books and testing out his own theories using Greece rather than truly fighting for the country's economic stability.
Tsipras explained that those discussions to avoid bankruptcy became “not only a method to secure a better deal for Greece. They became an experiment, an historic chance to prove the truth of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
On the line lay not only Greece's future but also those severe austerity policies required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were subjected to a popular referendum, an action which plunged the EU into a further crisis of identity.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister had little option but to ignore the result and agree to a bailout package from creditors that proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy that included creating a parallel currency as well as issuing coupons to pensioners, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He also wrote that his aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
