Within his recently unveiled memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches while he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, he selected the maverick economist Varoufakis to be his treasury head mainly because of his worldwide fame and his highly compelling abilities as a public orator.
“He was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis possessed a personal agenda which involved promoting Varoufakis's publications and testing out his game theories using Greece rather than genuinely fighting for its economic stability.
Tsipras noted how the discussions to prevent insolvency were “not just a method of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Talks
During rollercoaster negotiations, Greece came dangerously on the brink of leaving the eurozone.
At stake was not only Greece's destiny but also those harsh austerity policies required in return for bailout funds by international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by those against the cuts, Tsipras was forced to ignore the result and agree to a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised that it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
