In a newly released autobiography, named Ithaki, the ex- premier Tsipras does not hold back while he examines the chaotic period during Greece's debt drama.
A Controversial Choice
As per Tsipras's account, Tsipras appointed that maverick economist Varoufakis as the treasury head largely because of his international reputation and Varoufakis's highly compelling abilities when it came to communicator.
“He was, in reality, more of a star and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader alleges that his finance chief had a personal agenda that included promoting his books and testing out his economic models on Greece instead of truly advocating its economic stability.
He noted that those discussions to avoid insolvency became “not only a method of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of his theories.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to leaving the single currency area.
At stake lay both the country's future but also the severe austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, a move that threw the EU into further crisis of identity.
Although the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result and negotiate a rescue deal with creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, Tsipras knew it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, the author asserts how Varoufakis had proved himself to be “unfit for a deal that required complex and delicate management.”
He also wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were pushing for Grexit.
The retelling of history has been met with fury along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet on the matter.
