In a freshly published personal account, titled Ithaki, the ex- prime minister Tsipras does not hold back while he revisits that turbulent era during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, Tsipras selected that unorthodox economist Varoufakis to be his treasury head primarily because of his worldwide fame and his “extremely attractive” abilities as a public orator.
“He was, actually, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims that his finance chief had a personal motives that involved promoting Varoufakis's books as well as experimenting with his own theories using Greece rather than genuinely advocating its financial survival.
He explained how the talks to avoid bankruptcy were “not only a way to secure improved terms for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came perilously close to leaving the eurozone.
On the line lay not only Greece's destiny and those harsh cutbacks demanded in return for rescue loans by international creditors.
Failed Alternatives
Attempts to find funds elsewhere, such as an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a public vote, a move which threw Europe into a deeper crisis of identity.
Even though the referendum was won resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a contingency plan involving establishing a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the book, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal demanding complex and delicate management.”
He also claimed that Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
