In a newly released autobiography, titled Ithaki, the former premier Tsipras pulls no punches while he reflects on the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's account, he appointed the unorthodox economist Varoufakis to be his finance minister primarily because of the latter's worldwide fame along with Varoufakis's “extremely attractive” abilities as a public orator.
“He was, in reality, more of a star and less of an economic expert,” stated Tsipras.
Clashing Agendas
The former leader alleges how Varoufakis had his own agenda which included advancing Varoufakis's publications and experimenting with his own theories using the nation rather than truly advocating its financial survival.
He wrote how the discussions to stave off insolvency became “not just a way to secure improved terms for Greece. They became an experiment, an historic chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay both the country's future and those harsh cutbacks required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds from other sources, including an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum and U-Turn
That summer, the harsh bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the vote was carried decisively by voters who opposed the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal from creditors which proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included 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?”
Lasting Criticism
In the book, Tsipras concludes that Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
He also claimed how his aggressive approach left him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The account of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence on the matter.
