In a newly released autobiography, titled Ithaki, the former leader Tsipras spares no criticism while he revisits that chaotic period of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras appointed the unorthodox economist Varoufakis as his finance minister mainly because of the latter's worldwide fame and Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more of a celebrity rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had a personal agenda which involved advancing Varoufakis's publications as well as testing out his game theories using Greece rather than genuinely advocating its financial survival.
Tsipras explained that the negotiations to prevent insolvency were “not only a method to secure a better deal for the country. They were an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay both Greece's destiny but also the harsh austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the excoriating conditions were put to a popular referendum, a move that threw Europe into a deeper existential crisis.
Even though the referendum was carried decisively by voters who opposed austerity, the prime minister was forced but to reject its outcome then negotiate a rescue deal with creditors which turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
After the minister outlined a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author asserts how Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive management.”
He also claimed how his aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
This retelling of history has been met with anger and shock among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
