In a freshly published personal account, called Ithaki, the former premier Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
A Controversial Choice
According to Tsipras's recollections, Tsipras appointed the maverick economist Varoufakis as his finance minister mainly because of the latter's global profile and his “extremely attractive” abilities as a speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief possessed his own motives that involved promoting his publications and testing out his own economic models on Greece rather than genuinely fighting for the country's financial survival.
He explained that the talks to avoid bankruptcy were “not just a way of achieving a better deal for the country. They became a test, an historic chance to prove the validity of his theories.”
Critical Talks
Amid rollercoaster negotiations, Greece found itself perilously on the brink of leaving the eurozone.
On the line was not only Greece's destiny and the harsh austerity policies required in return for financial aid by international creditors.
Failed Options
Attempts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, an action which plunged Europe into further existential crisis.
Although the vote was won resoundingly by those against austerity, Tsipras had little option to ignore the result then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as issuing coupons to pensioners, the leader said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, the author asserts that Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
He further claimed how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The account of history has provoked anger along with shock in some quarters, while the former minister has kept a deafening silence regarding these claims.
