In a recently unveiled autobiography, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he examines that turbulent period of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, he appointed that unorthodox economist Varoufakis to be his treasury head primarily due to the latter's international reputation and his very persuasive skills when it came to speaker.
“In reality, he was, in reality, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief had his own agenda which involved promoting his books as well as experimenting with his own economic models using the nation rather than truly advocating its economic stability.
He wrote that the talks to prevent insolvency became “not only a method to secure a better deal for the country. They were a test, an historic chance to prove the validity of his theories.”
Critical Negotiations
During volatile negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line lay not only the country's future and the severe austerity policies demanded in exchange for financial aid from international creditors.
Failed Alternatives
Efforts to find funds from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and U-Turn
That summer, the excoriating conditions were put to a public vote, a move that threw Europe into a deeper existential crisis.
Although the referendum was carried decisively by those against austerity, Tsipras had little option to reject its outcome then agree to a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included creating a secondary currency as well as distributing coupons to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras also claimed that his confrontational style made him increasingly isolated among peers, put Greece at risk, and helped hardliners that were advocating a Greek exit from the euro.
The account of events has been met with anger and shock in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
