Within his newly released autobiography, titled Ithaki, the former leader Tsipras does not hold back as he revisits the turbulent period of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the unorthodox academic Varoufakis as the treasury head primarily due to his global profile and his “extremely attractive” skills when it came to public orator.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how Varoufakis possessed his own motives which involved advancing his publications as well as testing out his economic models using Greece instead of truly fighting for its financial survival.
Tsipras noted that the negotiations to prevent bankruptcy were “not just a way of achieving improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, the country found itself perilously on the brink of leaving the single currency area.
At stake was both the country's destiny but also the punishing cutbacks required in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those punitive bailout terms were subjected to a popular referendum, a move that threw Europe into further existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option but to reject its outcome then agree to a rescue deal with foreign lenders that proved to be more severe.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who drew publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts that his former ally had proved himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras also wrote that his confrontational approach made him more and more alone with colleagues, endangered the country, and assisted hawks who were advocating Grexit.
This account of history has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
