In a newly released autobiography, called Ithaki, the former leader Tsipras pulls no punches while he revisits the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, he chose the unorthodox economist Varoufakis as the treasury head mainly because of the latter's global profile along with his “extremely attractive” abilities as a speaker.
“He was, actually, more like a celebrity and less of an economist,” stated Tsipras.
Conflicting Priorities
Tsipras claims that his finance chief had his own agenda which included promoting Varoufakis's publications as well as testing out his own economic models using the nation instead of genuinely fighting for its financial survival.
Tsipras explained that the talks to stave off insolvency became “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
During rollercoaster discussions, the country came perilously close to leaving the single currency area.
At stake was both Greece's future but also those punishing austerity policies required in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move which plunged the EU into deeper crisis of identity.
Although the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option but to ignore the result then negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
He also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners who were pushing for Grexit.
This retelling of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence on the matter.
