In a newly released personal account, named Ithaki, the former leader Tsipras pulls no punches as he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, Tsipras chose that maverick economist Varoufakis to be his treasury head largely because of his worldwide fame along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, in reality, more of a star and less of an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal agenda that included promoting Varoufakis's publications as well as testing out his own economic models using the nation instead of genuinely fighting for the country's economic stability.
Tsipras noted how those talks to stave off insolvency became “not just a method of achieving a better deal for the country. They were an experiment, a monumental chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the eurozone.
At stake was both Greece's future but also those punishing cutbacks demanded in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive conditions were put to a popular referendum, a move which threw the EU into deeper existential crisis.
Although the vote was won resoundingly by those who opposed austerity, the prime minister had little option to reject its outcome then negotiate a rescue deal from creditors which proved to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to pensioners, the leader said he realised it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how his former ally demonstrated himself “unfit for a deal demanding complex and sensitive management.”
He further wrote that his aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This account of history has provoked fury along with shock among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
