In a freshly published personal account, named Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on the turbulent period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, Tsipras appointed that unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation along with his “extremely attractive” abilities as a speaker.
“He was, truthfully, more like a star rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader claims that his finance chief possessed a personal motives which included promoting Varoufakis's books as well as testing out his own game theories using Greece rather than truly fighting for the country's financial survival.
He wrote that the negotiations to prevent bankruptcy were “not just a method to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to leaving the single currency area.
On the line was not only Greece's future but also those harsh austerity policies required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action that threw the EU into a further existential crisis.
Even though the referendum was won decisively by voters against austerity, Tsipras had little option but to reject its outcome then negotiate a rescue deal from creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who attracted media attention, who graced the front pages of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency and distributing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself to be “unfit for an agreement demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, and assisted hawks that were advocating Grexit.
This account of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
