Within his newly released autobiography, titled Ithaki, the ex- premier Tsipras does not hold back while he revisits the chaotic period of Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, Tsipras chose the maverick economist Varoufakis as his finance minister largely because of his international reputation and his very persuasive abilities when it came to communicator.
“He was, in reality, more like a personality and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader alleges that Varoufakis possessed his own motives that included advancing Varoufakis's books as well as testing out his own economic models using Greece instead of genuinely advocating its economic stability.
He explained that those negotiations to avoid bankruptcy became “not only a method of achieving improved terms for the country. They were a test, a monumental opportunity to demonstrate the validity of his ideas.”
Critical Negotiations
Amid volatile negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line lay not only the country's destiny and the severe austerity policies demanded in return for financial aid by international creditors.
Failed Options
Attempts to secure funds from other sources, including an urgent appeal to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the punitive conditions were put to a popular referendum, a move that plunged the EU into a further existential crisis.
Although the vote was carried resoundingly by voters against austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors that turned out to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew publicity, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan involving creating a parallel currency and distributing vouchers to retirees, Tsipras knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself “unfit for a deal that required complex and sensitive handling.”
He further wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for Grexit.
The account of history has been met with fury and shock in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
