In a newly released personal account, called Ithaki, the ex- leader Tsipras pulls no punches while he examines the chaotic period during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, Tsipras selected that unorthodox economist Varoufakis to be his finance minister largely due to the latter's global profile along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, in reality, more of a star rather than an economic expert,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis had a personal agenda that included promoting Varoufakis's publications as well as experimenting with his own theories on Greece rather than genuinely fighting for the country's economic stability.
He wrote that the discussions to prevent bankruptcy became “not just a way to secure a better deal for the country. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake was both the country's future and those severe austerity measures required in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, a move which threw Europe into a further existential crisis.
Although the vote was carried resoundingly by voters who opposed austerity, Tsipras had little option to ignore the result and agree to a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy involving establishing a secondary currency and distributing coupons to pensioners, the leader knew it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author asserts how Varoufakis had proved himself “unfit for an agreement that required complex and sensitive handling.”
Tsipras further wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
The retelling of events has been met with anger and shock among certain groups, whereas the former minister has kept a deafening silence regarding these claims.
