In a freshly published personal account, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on that turbulent era of Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, Tsipras chose that unorthodox economist Varoufakis as his treasury head largely because of the latter's worldwide fame along with his highly compelling skills when it came to speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed a personal agenda which included advancing Varoufakis's publications as well as experimenting with his own game theories using Greece rather than truly advocating the country's economic stability.
He wrote that the discussions to prevent insolvency were “not only a way to secure improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During volatile discussions, the country came perilously on the brink of leaving the eurozone.
At stake lay both Greece's future and the severe austerity measures demanded in return for financial aid by international creditors.
Failed Options
Attempts to find funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, an action that threw the EU into further existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and distributing coupons to retirees, the leader knew that it was game over questioning him: “Is this for real?”
Enduring Rebuke
Within the book, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
The retelling of history has provoked fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
