Within his recently unveiled autobiography, named Ithaki, the ex- prime minister Tsipras pulls no punches while he examines the chaotic era during Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, he appointed that maverick economist Varoufakis to be the treasury head mainly due to his worldwide fame along with Varoufakis's highly compelling skills when it came to speaker.
“He was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief had a personal motives which involved advancing Varoufakis's books and experimenting with his own economic models on Greece rather than truly advocating its financial survival.
He wrote how the negotiations to prevent bankruptcy became “not just a way to secure a better deal for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously close to exiting the single currency area.
At stake was both the country's future and the harsh austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
That summer, those harsh conditions were put to a public vote, an action which threw Europe into deeper existential crisis.
Even though the vote was won resoundingly by voters who opposed austerity, Tsipras was forced but to ignore the result then negotiate a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, the author concludes how his former ally had proved himself “unfit for an agreement that required complex and sensitive handling.”
He further wrote how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for Grexit.
The account of history has been met with anger and stunned disbelief among certain groups, whereas the former minister has kept a conspicuous quiet regarding these claims.
