In a newly released memoir, called Ithaki, the ex- prime minister Tsipras spares no criticism while he examines the turbulent era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, Tsipras appointed the maverick academic Varoufakis as the finance minister largely due to the latter's international reputation and Varoufakis's very persuasive abilities as a speaker.
“He was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief had his own agenda which included promoting Varoufakis's books and experimenting with his game theories on Greece rather than genuinely advocating its economic stability.
Tsipras noted that those discussions to stave off bankruptcy became “not only a method to secure a better deal for Greece. They were a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's future but also those severe cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, such as a desperate plea to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, Tsipras had little option to ignore the result and agree to a bailout package with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and distributing coupons to retirees, the leader knew that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author asserts how Varoufakis had proved himself “unsuitable for a deal demanding intricate and sensitive management.”
Tsipras further claimed how his confrontational style made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating Grexit.
This account of history has been met with anger along with stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
