In a freshly published memoir, titled Ithaki, the former premier Tsipras does not hold back as he examines that turbulent period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's account, Tsipras chose the unorthodox academic Varoufakis as the finance minister primarily because of his global profile and his very persuasive skills when it came to public orator.
“He was, truthfully, more of a star rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had his own motives that included promoting his books as well as testing out his own game theories on Greece instead of genuinely advocating its economic stability.
He noted how the discussions to stave off bankruptcy were “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During volatile negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake was both the country's future but also those harsh cutbacks required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure funds from other sources, including a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the punitive conditions were put to a popular referendum, a move which threw Europe into deeper existential crisis.
Although the vote was carried decisively by voters against austerity, Tsipras had little option but to reject its outcome then agree to a rescue deal with creditors that proved to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, Tsipras knew that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
In the book, the author asserts how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and sensitive management.”
He further wrote that his confrontational approach made him more and more alone among peers, put Greece at risk, while assisted hawks that were advocating 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.
