Within his newly released autobiography, titled Ithaki, the former leader Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's recollections, Tsipras chose the maverick economist Varoufakis to be the finance minister primarily because of the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“He was, truthfully, more of a celebrity rather than an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges how Varoufakis possessed his own motives that included promoting his publications as well as experimenting with his own theories on Greece instead of truly fighting for its financial survival.
Tsipras noted that the talks to avoid bankruptcy were “not only a method of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of his economic theories.”
Critical Negotiations
During volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay both the country's destiny and those harsh austerity policies demanded in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, the harsh bailout terms were subjected to a public vote, a move that threw the EU into deeper crisis of identity.
Even though the referendum was carried resoundingly by voters against austerity, Tsipras was forced to ignore the result and agree to a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who drew publicity, who graced the covers of magazines globally … it seemed he relished the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, the leader said he realised that it was the end and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts that his former ally had proved himself “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also wrote that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The account of events has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
