Within his newly released autobiography, named Ithaki, the former prime minister Tsipras pulls no punches as he examines that chaotic period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, Tsipras appointed the maverick academic Varoufakis as his finance minister primarily due to the latter's global profile and Varoufakis's highly compelling skills as a speaker.
“He was, truthfully, more of a star rather than an economist,” stated Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief had his own motives that involved advancing his books and experimenting with his game theories using Greece instead of truly fighting for the country's financial survival.
Tsipras noted how those talks to avoid insolvency were “not only a way of achieving improved terms for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was not only the country's destiny but also the harsh austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, those harsh bailout terms were put to a public vote, a move which threw the EU into deeper existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, the prime minister was forced but to ignore the result then negotiate a rescue deal from creditors which turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister proposed a backup strategy that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, the author asserts that Varoufakis had proved himself to be “unfit for an agreement demanding intricate and delicate management.”
He also wrote how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were advocating Grexit.
This account of history has provoked anger along with stunned disbelief in some quarters, while the former minister has kept a deafening silence on the matter.
