Within his newly released autobiography, named Ithaki, the ex- prime minister Tsipras does not hold back while he examines that turbulent period of Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, Tsipras appointed the unorthodox economist Varoufakis to be the finance minister primarily due to the latter's worldwide fame and Varoufakis's highly compelling abilities as a public orator.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras alleges that his finance chief possessed his own agenda which involved advancing Varoufakis's publications as well as testing out his economic models on Greece rather than genuinely advocating the country's financial survival.
He wrote that the discussions to prevent insolvency became “not just a method of achieving improved terms for the country. They became a test, an historic opportunity to prove the validity of his economic theories.”
Critical Negotiations
During volatile negotiations, the country found itself perilously close to exiting the eurozone.
At stake was both Greece's destiny and the severe austerity measures demanded in return for financial aid by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh conditions were subjected to a public vote, a move which threw the EU into deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal from creditors which proved to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, the leader knew it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself “unfit for a deal that required complex and delicate management.”
He also wrote how Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked anger along with stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
