In a recently unveiled memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches while he examines the turbulent period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's version, he appointed that unorthodox academic Varoufakis to be his finance minister largely because of his international reputation and Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, in reality, more of a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras claims that Varoufakis possessed a personal motives that included promoting his publications as well as experimenting with his theories on Greece rather than truly fighting for the country's economic stability.
He wrote how the negotiations to prevent insolvency were “not just a method of achieving improved terms for Greece. They were a test, a monumental chance to prove the truth of his theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously on the brink of exiting the single currency area.
At stake was not only the country's destiny and the severe austerity measures demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote and U-Turn
That summer, the harsh bailout terms were put to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister was forced to ignore the result then agree to a bailout package from creditors that turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of events has provoked anger and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
