In a newly released personal account, titled Ithaki, the former premier Tsipras pulls no punches while he revisits that turbulent period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, he appointed the unorthodox academic Varoufakis as his treasury head mainly because of his global profile along with Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief had his own motives which involved promoting his books and testing out his own theories on the nation instead of genuinely advocating its economic stability.
Tsipras explained how those negotiations to prevent insolvency became “not only a method to secure improved terms for Greece. They were a test, a monumental opportunity to prove the validity of his theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake was not only Greece's future but also those punishing austerity policies demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the harsh conditions were put to a popular referendum, a move that threw the EU into a deeper existential crisis.
Although the vote was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome and negotiate a bailout package from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as issuing vouchers to pensioners, the leader said he realised that it was the end and asked him: “Is this for real?”
Enduring Criticism
In the book, the author asserts how his former ally demonstrated himself “unfit for an agreement demanding complex and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
