In a freshly published memoir, titled Ithaki, the former prime minister Tsipras spares no criticism while he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's account, Tsipras chose the maverick academic Varoufakis to be his treasury head mainly because of the latter's global profile and his “extremely attractive” abilities as a speaker.
“He was, actually, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief had his own motives which included promoting Varoufakis's books as well as experimenting with his own game theories using the nation instead of genuinely fighting for the country's financial survival.
Tsipras wrote how the negotiations to stave off bankruptcy became “not just a method to secure improved terms for Greece. They became an experiment, an historic chance to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came perilously on the brink of leaving the single currency area.
At stake was not only the country's future and the severe austerity measures required in exchange for bailout funds by international creditors.
Failed Options
Efforts to find financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those punitive conditions were put to a public vote, an action that threw Europe into further existential crisis.
Although the vote was won decisively by those who opposed the cuts, the prime minister had little option to ignore the result and negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the figure who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and issuing vouchers to pensioners, the leader knew it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts that his former ally demonstrated himself to be “unsuitable for an agreement that required complex and delicate management.”
He further wrote that his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger along with shock in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
