In a newly released autobiography, named Ithaki, the ex- premier Tsipras spares no criticism as he revisits that chaotic era of Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he selected the maverick academic Varoufakis to be his finance minister primarily because of his international reputation along with Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed his own motives that involved promoting Varoufakis's publications and testing out his own theories on Greece instead of genuinely advocating the country's financial survival.
Tsipras explained that the negotiations to avoid bankruptcy became “not just a method to secure a better deal for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line was not only Greece's destiny and those harsh austerity policies demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the excoriating conditions were put to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the referendum was won decisively by those against the cuts, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When the minister proposed a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive management.”
He also wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for Grexit.
The account of events has been met with fury and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
