In a recently unveiled personal account, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits the turbulent era of Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, Tsipras chose the unorthodox economist Varoufakis as his treasury head primarily due to the latter's worldwide fame along with his highly compelling abilities when it came to public orator.
“He was, truthfully, more like a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal motives that included advancing his books as well as experimenting with his economic models on the nation instead of genuinely advocating the country's economic stability.
Tsipras wrote how those talks to stave off insolvency became “not only a way of achieving a better deal for Greece. They became a test, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece came dangerously close to leaving the single currency area.
On the line was both Greece's future but also those severe cutbacks required in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, including an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive conditions were put to a public vote, a move which threw the EU into further crisis of identity.
Even though the vote was won decisively by voters who opposed austerity, Tsipras had little option but to ignore the result then agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for a deal that required complex and sensitive handling.”
He also wrote how his aggressive approach made him more and more alone among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
The account of history has been met with anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
