Within his newly released memoir, called Ithaki, the former prime minister Tsipras spares no criticism as he examines that turbulent era during Greece's financial crisis.
A Controversial Appointment
In the ex-PM's recollections, he appointed the unorthodox academic Varoufakis as his finance minister mainly due to his international reputation and Varoufakis's “extremely attractive” abilities as a speaker.
“He was, in reality, more of a celebrity and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how Varoufakis possessed his own agenda which included promoting Varoufakis's publications as well as testing out his economic models using Greece rather than truly advocating its economic stability.
Tsipras noted how those talks to stave off bankruptcy became “not just a method to secure improved terms for Greece. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's future but also those harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Although the referendum was carried decisively by those who opposed austerity, the prime minister had little option but to ignore the result and agree to a bailout package with creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who drew publicity, who graced the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, Tsipras asserts that his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive management.”
He further claimed how his confrontational style made him increasingly isolated among peers, endangered the country, and assisted hawks who were pushing for Grexit.
This retelling of history has provoked anger and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
