In a freshly published memoir, called Ithaki, the ex- leader Tsipras pulls no punches as he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's account, he appointed that maverick academic Varoufakis as his treasury head primarily due to the latter's international reputation along with his “extremely attractive” abilities as a public orator.
“He was, truthfully, more of a personality and less of an economic expert,” wrote Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis possessed his own agenda that included advancing his publications as well as experimenting with his game theories on Greece instead of genuinely advocating the country's economic stability.
He noted how those talks to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to demonstrate the truth of his theories.”
Critical Negotiations
During tense negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line lay both the country's future but also those severe austerity policies demanded in return for bailout funds from international creditors.
Failed Alternatives
Efforts to secure funds from other sources, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, an action which threw the EU into a further existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result and negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author asserts that his former ally had proved himself to be “unfit for a deal that required complex and sensitive handling.”
He also claimed how Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This account of history has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
