In a newly released autobiography, called Ithaki, the ex- leader Tsipras pulls no punches while he examines that chaotic era of Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, he appointed the maverick economist Varoufakis to be his treasury head primarily because of the latter's worldwide fame along with his very persuasive abilities as a speaker.
“In reality, he was, truthfully, more like a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had a personal motives that included promoting Varoufakis's books as well as testing out his theories using Greece rather than truly fighting for its financial survival.
He explained how those discussions to avoid insolvency became “not just a method to secure improved terms for Greece. They became a test, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's future but also the severe austerity measures required in exchange for financial aid by international creditors.
Failed Options
Efforts to secure financing elsewhere, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were put to a public vote, an action which threw Europe into a further crisis of identity.
Although the referendum was carried resoundingly by voters against austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
When the minister proposed a contingency plan involving creating a secondary currency as well as distributing coupons to pensioners, Tsipras knew it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
He further wrote that Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and helped hawks that were advocating Grexit.
This account of events has provoked anger along with shock in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
