Within his freshly published memoir, titled Ithaki, the ex- prime minister Tsipras does not hold back as he reflects on the chaotic era of Greece's debt drama.
An Unconventional Choice
As per Tsipras's account, he selected the maverick economist Varoufakis to be the treasury head mainly because of his international reputation and his very persuasive abilities as a communicator.
“He was, in reality, more of a star rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis possessed his own agenda which involved promoting Varoufakis's publications as well as experimenting with his economic models using the nation rather than truly fighting for the country's financial survival.
Tsipras explained that those negotiations to stave off bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During volatile discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake was both Greece's future but also the harsh austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those punitive conditions were put to a popular referendum, a move that threw Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed the cuts, the prime minister had little option to ignore the result then agree to a rescue deal from foreign lenders that turned out to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a backup strategy that included creating a secondary currency as well as issuing vouchers to retirees, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, the author concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive handling.”
He further claimed how Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of history has provoked anger and stunned disbelief among certain groups, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
