Within his newly released memoir, named Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on the chaotic period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, Tsipras appointed that maverick economist Varoufakis to be the treasury head mainly due to the latter's international reputation and Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more of a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief possessed his own agenda that included advancing Varoufakis's books as well as experimenting with his economic models using Greece rather than truly advocating the country's financial survival.
Tsipras explained that those talks to stave off insolvency were “not only a method of achieving a better deal for Greece. They became a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile negotiations, the country came perilously on the brink of leaving the single currency area.
At stake was both the country's future and those harsh cutbacks required in return for financial aid from international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, a move which plunged Europe into a deeper existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders which turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts how Varoufakis had proved himself “unsuitable for a deal that required complex and delicate handling.”
He also claimed how Varoufakis's confrontational style made him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with fury along with shock among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
