Within his freshly published memoir, titled Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, he chose that unorthodox economist Varoufakis to be the treasury head primarily due to his global profile along with his “extremely attractive” skills as a public orator.
“In reality, he was, actually, more of a star and less of an economic expert,” stated Tsipras.
Clashing Priorities
The former leader alleges that his finance chief had his own motives that involved advancing his books and testing out his own economic models on Greece instead of truly fighting for its financial survival.
He explained how the talks to prevent bankruptcy became “not just a way to secure a better deal for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, Greece came dangerously close to exiting the single currency area.
At stake was both the country's future and those severe austerity policies demanded in return for financial aid by foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, an action which threw Europe into a further existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, Tsipras was forced but to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy involving establishing a secondary currency and issuing vouchers to retirees, the leader knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
The retelling of history has been met with fury along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence regarding these claims.
