Within his recently unveiled autobiography, named Ithaki, the former premier Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, Tsipras appointed the maverick academic Varoufakis as the finance minister primarily because of the latter's global profile along with Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis had a personal agenda which included promoting Varoufakis's books as well as testing out his own game theories using Greece instead of truly fighting for its financial survival.
He noted how those discussions to avoid bankruptcy were “not only a way to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, Greece came perilously on the brink of exiting the eurozone.
At stake was both the country's future but also the harsh austerity policies demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, an action that plunged Europe into a further existential crisis.
Even though the referendum was won decisively by those against austerity, the prime minister was forced to ignore the result then agree to a bailout package with creditors that proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras further wrote that his confrontational approach left him more and more alone among peers, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
