Within his recently unveiled memoir, named Ithaki, the former premier Tsipras does not hold back while he revisits that turbulent period of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, he appointed that maverick academic Varoufakis as the finance minister mainly because of his international reputation and Varoufakis's highly compelling skills as a communicator.
“He was, truthfully, more like a star and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief possessed his own agenda that included advancing Varoufakis's publications and experimenting with his game theories on Greece rather than truly advocating the country's economic stability.
He explained how the talks to avoid bankruptcy became “not only a way of achieving improved terms for the country. They were a test, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During volatile discussions, the country came dangerously on the brink of exiting the single currency area.
On the line lay both the country's future but also the punishing cutbacks demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome then negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
He further claimed that his confrontational style made him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
This retelling of history has been met with anger along with stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
