Within his newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back while he examines the chaotic era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, he chose the unorthodox economist Varoufakis as his treasury head primarily because of the latter's worldwide fame and his very persuasive abilities as a communicator.
“In reality, he was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims that his finance chief possessed his own agenda that included promoting his publications and testing out his own game theories using Greece instead of genuinely fighting for the country's economic stability.
Tsipras wrote that the discussions to stave off insolvency became “not just a way of achieving a better deal for the country. They were a test, a monumental chance to prove the truth of his ideas.”
Critical Negotiations
During volatile negotiations, the country came dangerously close to exiting the single currency area.
At stake was both the country's future but also the punishing austerity policies required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate plea to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were put to a popular referendum, an action which plunged Europe into deeper existential crisis.
Although the referendum was won resoundingly by those against the cuts, Tsipras was forced but to ignore the result and agree to a rescue deal from creditors that turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the figure who drew publicity, who graced the covers of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal that required complex and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating Grexit.
The retelling of history has provoked anger and shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
