Within his newly released memoir, titled Ithaki, the former prime minister Tsipras does not hold back while he revisits the chaotic era during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, he selected the maverick economist Varoufakis to be his finance minister primarily due to his worldwide fame and Varoufakis's highly compelling skills when it came to speaker.
“In reality, he was, in reality, more like a personality and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief possessed a personal agenda that included promoting his publications as well as testing out his theories on Greece rather than truly advocating its financial survival.
He wrote that those discussions to stave off bankruptcy became “not just a method to secure improved terms for the country. They became a test, a monumental chance to prove the truth of his economic theories.”
Critical Talks
During volatile negotiations, the country came dangerously close to leaving the eurozone.
On the line lay not only Greece's destiny but also those punishing austerity policies demanded in return for rescue loans from foreign lenders.
Failed Options
Attempts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were put to a public vote, an action which plunged the EU into further existential crisis.
Even though the vote was won decisively by voters against austerity, the prime minister had little option to ignore the result then negotiate a bailout package from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes that his former ally had proved himself to be “unsuitable for an agreement that required intricate and sensitive management.”
He also claimed that his confrontational style made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
The retelling of events has been met with anger along with shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
