In a newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back as he examines that chaotic period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he appointed the maverick academic Varoufakis to be the treasury head mainly due to the latter's worldwide fame along with his very persuasive skills as a communicator.
“In reality, he was, actually, more like a personality rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own motives which involved promoting his publications and experimenting with his theories using the nation rather than truly advocating the country's financial survival.
Tsipras noted how those discussions to avoid bankruptcy were “not only a method to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
During volatile discussions, the country came perilously on the brink of exiting the single currency area.
On the line was not only Greece's future but also those punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, those excoriating bailout terms were put to a public vote, a move which threw Europe into a deeper existential crisis.
Although the referendum was won decisively by those against the cuts, the prime minister had little option to ignore the result then agree to a rescue deal with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
After the minister outlined a contingency plan that included creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and delicate handling.”
Tsipras also claimed how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and helped hawks that were advocating Grexit.
This account of events has been met with fury and stunned disbelief among certain groups, while the former minister has maintained a deafening silence on the matter.
