Within his newly released personal account, called Ithaki, the former prime minister Tsipras does not hold back as he examines that chaotic era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, he appointed the maverick academic Varoufakis as the treasury head primarily due to the latter's global profile along with his “extremely attractive” abilities as a communicator.
“He was, in reality, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief had a personal motives which included advancing his publications as well as testing out his own game theories on Greece instead of genuinely fighting for the country's economic stability.
He explained that those negotiations to avoid insolvency were “not just a way to secure a better deal for the country. They were an experiment, an historic chance to prove the truth of his theories.”
Critical Negotiations
Amid tense negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake lay both the country's destiny and those punishing austerity measures demanded in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were put to a popular referendum, a move which threw Europe into deeper crisis of identity.
Although the referendum was carried resoundingly by voters against the cuts, the prime minister was forced but to reject its outcome and agree to a rescue deal with creditors which proved to be even harsher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader said he realised that it was game over and asked him: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive handling.”
He further wrote that Varoufakis's confrontational approach left him more and more alone among peers, endangered the country, while assisted hawks that were advocating Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
