In a recently unveiled memoir, called Ithaki, the former premier Tsipras pulls no punches as he reflects on the chaotic period during Greece's financial crisis.
A Controversial Choice
In Tsipras's account, he appointed the unorthodox economist Varoufakis as the treasury head mainly due to his international reputation and his very persuasive abilities as a speaker.
“In reality, he was, actually, more of a star rather than an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis had a personal agenda which involved advancing Varoufakis's publications and testing out his own theories using Greece instead of genuinely fighting for its economic stability.
Tsipras explained how those negotiations to avoid bankruptcy became “not just a way of achieving a better deal for Greece. They were a test, a monumental chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
Amid tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's future and the severe austerity measures required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move that threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed the cuts, the prime minister was forced to reject its outcome then agree to a rescue deal with creditors that turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the covers of magazines the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan that included creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author asserts that Varoufakis demonstrated himself “unfit for an agreement demanding intricate and sensitive management.”
He further wrote that his confrontational style left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were advocating Grexit.
This account of events has been met with anger and stunned disbelief among certain groups, while the former minister has maintained a deafening silence regarding these claims.
