Within his freshly published autobiography, titled Ithaki, the former premier Tsipras spares no criticism while he examines the chaotic era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's version, Tsipras selected that unorthodox academic Varoufakis to be his treasury head primarily because of the latter's global profile along with his very persuasive skills as a public orator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests that his finance chief possessed his own agenda which involved advancing Varoufakis's publications as well as testing out his own economic models using Greece instead of genuinely advocating its financial survival.
Tsipras noted that the talks to stave off insolvency were “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to prove the truth of his ideas.”
High-Stakes Talks
During tense negotiations, the country found itself dangerously on the brink of exiting the single currency area.
On the line was both the country's destiny but also those harsh austerity policies demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the harsh conditions were subjected to a public vote, an action which plunged the EU into a deeper existential crisis.
Although the referendum was won decisively by those against the cuts, Tsipras was forced but to reject its outcome then agree to a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included creating a parallel currency and distributing vouchers to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked anger along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
