In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's recollections, he appointed the unorthodox economist Varoufakis as his finance minister mainly because of his international reputation along with his “extremely attractive” abilities as a public orator.
“He was, actually, more of a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed a personal motives which involved promoting Varoufakis's publications and experimenting with his game theories on the nation rather than genuinely fighting for its financial survival.
Tsipras explained that the talks to prevent bankruptcy were “not only a method to secure a better deal for Greece. They were an experiment, a monumental opportunity to prove the validity of his ideas.”
Critical Negotiations
During volatile discussions, the country came perilously on the brink of exiting the single currency area.
On the line lay not only Greece's future and the harsh austerity policies demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action which threw the EU into a further existential crisis.
Although the vote was won resoundingly by those against austerity, Tsipras was forced to ignore the result then agree to a rescue deal with creditors that proved to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal that required intricate and sensitive management.”
Tsipras further claimed that his aggressive style left him increasingly isolated with colleagues, endangered the country, while assisted hawks that were advocating Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, while the former minister has maintained a deafening silence on the matter.
