In a freshly published autobiography, named Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras selected the unorthodox academic Varoufakis to be his finance minister primarily because of the latter's international reputation along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, actually, more like a star rather than an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis possessed a personal motives that included promoting Varoufakis's publications as well as testing out his economic models on Greece rather than truly advocating the country's financial survival.
He wrote that those talks to prevent insolvency became “not only a way of achieving a better deal for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, the country came perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future but also those severe austerity policies demanded in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
That summer, those harsh conditions were put to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome and negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he relished his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for a deal demanding complex and sensitive management.”
Tsipras further claimed that his aggressive approach left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were advocating Grexit.
This retelling of history has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
