In a newly released memoir, called Ithaki, the ex- premier Tsipras spares no criticism while he revisits that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, he appointed the unorthodox economist Varoufakis to be the treasury head mainly due to the latter's worldwide fame and Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, in reality, more like a celebrity rather than an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how his finance chief had his own agenda which involved promoting his publications as well as testing out his own economic models using the nation instead of truly fighting for the country's financial survival.
He explained that the discussions to stave off bankruptcy became “not only a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece came perilously on the brink of exiting the single currency area.
At stake was not only the country's future and the punishing austerity policies required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those punitive conditions were put to a popular referendum, an action which threw Europe into deeper existential crisis.
Even though the vote was carried decisively by voters against the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal with creditors that turned out to be even harsher.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis had proved himself to be “unfit for a deal demanding intricate and delicate handling.”
He also wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, and helped hawks who were pushing for a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
