In a newly released autobiography, named Ithaki, the ex- premier Tsipras pulls no punches while he examines that chaotic era during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's version, Tsipras appointed that unorthodox academic Varoufakis as his treasury head largely because of his worldwide fame along with his very persuasive skills as a speaker.
“He was, in reality, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief possessed his own motives that included promoting Varoufakis's publications as well as testing out his own game theories using the nation instead of genuinely fighting for the country's economic stability.
Tsipras noted that the discussions to stave off insolvency became “not only a way of achieving improved terms for the country. They became an experiment, a monumental opportunity to prove the validity of his ideas.”
Critical Negotiations
During tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was not only Greece's destiny and the harsh austerity measures demanded in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Although the vote was won decisively by those against austerity, Tsipras had little option but to reject its outcome then negotiate a bailout package with foreign lenders which proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew media attention, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
When the minister proposed a backup strategy that included creating a parallel currency as well as issuing coupons to retirees, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
He also wrote how Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
