In a recently unveiled personal account, titled Ithaki, the ex- leader Tsipras does not hold back as he reflects on the chaotic era during Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he selected the maverick economist Varoufakis as his finance minister primarily due to his international reputation and Varoufakis's highly compelling abilities as a speaker.
“He was, actually, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal motives that involved promoting Varoufakis's books as well as experimenting with his theories on the nation rather than truly advocating the country's economic stability.
Tsipras noted how the negotiations to avoid bankruptcy were “not just a method to secure improved terms for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, the country came dangerously close to exiting the eurozone.
On the line lay both Greece's future and those harsh austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move that plunged the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by voters who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras knew it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the memoir, the author concludes how his former ally had proved himself “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras further wrote how his aggressive approach left him more and more alone with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
