In a freshly published memoir, named Ithaki, the former leader Tsipras pulls no punches as he examines the turbulent period during Greece's economic turmoil.
A Controversial Choice
According to Tsipras's account, Tsipras appointed that maverick economist Varoufakis to be the finance minister largely because of his worldwide fame and Varoufakis's highly compelling abilities as a public orator.
“He was, truthfully, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis had a personal agenda which involved advancing Varoufakis's publications as well as testing out his economic models using the nation rather than truly advocating the country's economic stability.
He noted how the discussions to avoid insolvency were “not only a method of achieving a better deal for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster negotiations, Greece found itself perilously on the brink of leaving the single currency area.
On the line was not only Greece's destiny but also those severe cutbacks demanded in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin reportedly told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, an action that threw the EU into a deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, Tsipras was forced to reject its outcome and negotiate a bailout package from creditors that proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and distributing vouchers to retirees, the leader knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras further wrote that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
The retelling of history has been met with anger and shock in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
