In a newly released memoir, titled Ithaki, the former prime minister Tsipras spares no criticism while he reflects on that chaotic period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras chose that maverick academic Varoufakis to be his treasury head mainly due to the latter's global profile along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, actually, more like a star and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how Varoufakis had a personal agenda which involved promoting his publications as well as experimenting with his economic models using the nation rather than genuinely fighting for its financial survival.
He wrote that the discussions to prevent insolvency became “not only a way to secure a better deal for Greece. They became a test, an historic chance to demonstrate the validity of his theories.”
Critical Talks
Amid volatile negotiations, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both the country's future but also the harsh cutbacks required in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
That summer, the harsh conditions were subjected to a popular referendum, a move which plunged the EU into a further crisis of identity.
Even though the vote was won decisively by voters against austerity, Tsipras was forced but to reject its outcome and negotiate a rescue deal from creditors that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, the author asserts how Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and delicate handling.”
He further wrote that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
