In a newly released memoir, titled Ithaki, the ex- leader Tsipras does not hold back while he revisits the turbulent period of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's recollections, he chose that maverick academic Varoufakis as his treasury head largely due to his international reputation along with Varoufakis's “extremely attractive” abilities as a speaker.
“He was, actually, more like a celebrity rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief possessed a personal motives that involved advancing Varoufakis's publications and experimenting with his economic models using the nation rather than genuinely advocating its financial survival.
Tsipras noted that the discussions to avoid insolvency were “not just a way of achieving a better deal for the country. They were an experiment, an historic chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously on the brink of leaving the single currency area.
At stake lay both the country's future and those punishing austerity measures required in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to secure funds from other sources, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the excoriating bailout terms were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Even though the vote was won decisively by voters against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy involving creating a secondary currency as well as distributing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras asserts that his former ally had proved himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras also wrote that his confrontational approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
This account of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
