In a freshly published autobiography, titled Ithaki, the former premier Tsipras does not hold back while he examines the chaotic period of Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's recollections, he appointed that unorthodox academic Varoufakis to be the finance minister largely because of his worldwide fame and his “extremely attractive” skills as a communicator.
“He was, truthfully, more of a star rather than an economic expert,” wrote Tsipras.
Conflicting Agendas
The former leader suggests how his finance chief possessed a personal agenda that involved advancing Varoufakis's publications as well as experimenting with his own economic models using the nation rather than truly fighting for the country's economic stability.
He noted that the negotiations to stave off insolvency became “not only a way of achieving improved terms for the country. They were a test, an historic chance to prove the validity of his theories.”
High-Stakes Negotiations
During volatile discussions, Greece came perilously close to leaving the single currency area.
At stake was both the country's destiny but also those severe cutbacks required in return for financial aid from international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were put to a public vote, a move that threw the EU into further existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal from foreign lenders that turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy that included establishing a secondary currency and distributing vouchers to pensioners, the leader knew it was game over and asked him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for an agreement that required complex and delicate handling.”
He further claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with fury along with stunned disbelief among certain groups, while the former minister has so far kept a deafening silence on the matter.
