In a newly released memoir, titled Ithaki, the ex- premier Tsipras does not hold back while he reflects on that turbulent period during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's version, Tsipras selected that maverick academic Varoufakis as his finance minister primarily because of his worldwide fame and Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, truthfully, more like a celebrity and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief had his own motives that involved promoting his books as well as experimenting with his own theories on Greece instead of genuinely fighting for the country's financial survival.
He noted that the discussions to avoid insolvency became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to prove the validity of his ideas.”
Critical Negotiations
Amid tense discussions, the country came perilously on the brink of leaving the single currency area.
On the line was both the country's future but also those harsh cutbacks demanded in exchange for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating conditions were put to a popular referendum, a move that plunged Europe into a deeper existential crisis.
Even though the referendum was won resoundingly by voters who opposed the cuts, the prime minister was forced but to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, the leader said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive management.”
Tsipras further claimed that his aggressive style left him more and more alone among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
