In a recently unveiled personal account, called Ithaki, the ex- prime minister Tsipras spares no criticism as he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, Tsipras chose the unorthodox economist Varoufakis as his treasury head mainly because of the latter's international reputation and Varoufakis's “extremely attractive” abilities when it came to communicator.
“He was, actually, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges that Varoufakis possessed a personal agenda that included promoting his books and experimenting with his economic models on the nation rather than genuinely fighting for its economic stability.
Tsipras explained how those discussions to avoid insolvency became “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense discussions, the country came dangerously on the brink of leaving the eurozone.
At stake was not only the country's future and the harsh austerity measures required in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, including a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, an action which plunged Europe into a further existential crisis.
Although the referendum was won decisively by voters against austerity, Tsipras was forced to ignore the result then negotiate a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, and assisted hawks that were advocating a Greek exit from the euro.
This account of history has been met with anger and stunned disbelief among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
