Within his newly released memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches as he examines the turbulent era during Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's version, he appointed the unorthodox academic Varoufakis as his finance minister mainly due to his global profile and his “extremely attractive” abilities when it came to public orator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader alleges how his finance chief had his own agenda that included promoting Varoufakis's books as well as testing out his game theories using Greece rather than genuinely advocating the country's financial survival.
He wrote how the talks to avoid bankruptcy were “not only a method to secure improved terms for Greece. They were an experiment, a monumental chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself perilously on the brink of exiting the eurozone.
On the line was not only Greece's destiny and the severe austerity measures required in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, an action which plunged the EU into further existential crisis.
Even though the vote was won resoundingly by voters against austerity, Tsipras was forced to reject its outcome and negotiate a rescue deal with creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who drew publicity, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan involving establishing a parallel currency and issuing coupons to retirees, the leader knew that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
