Within his recently unveiled personal account, named Ithaki, the ex- premier Tsipras spares no criticism while he revisits that turbulent era of Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's version, he chose the unorthodox economist Varoufakis as the treasury head largely because of the latter's international reputation along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more like a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own motives which included advancing Varoufakis's books as well as experimenting with his own economic models using the nation rather than genuinely advocating the country's financial survival.
Tsipras wrote that the talks to prevent insolvency were “not only a way of achieving a better deal for Greece. They became a test, an historic opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came dangerously on the brink of exiting the single currency area.
On the line lay both Greece's future and those punishing austerity policies required in exchange for bailout funds from foreign lenders.
Failed Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the vote was won resoundingly by voters against austerity, Tsipras was forced to reject its outcome then negotiate a rescue deal with creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author concludes how his former ally demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He also wrote that his confrontational style left him increasingly isolated among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The retelling of events has been met with fury and shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
