Within his freshly published autobiography, titled Ithaki, the ex- premier Tsipras spares no criticism as he examines that turbulent period of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the maverick academic Varoufakis to be his finance minister primarily due to his international reputation and Varoufakis's very persuasive skills when it came to public orator.
“He was, in reality, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief had a personal motives that included promoting Varoufakis's books and experimenting with his own game theories using the nation instead of genuinely fighting for the country's financial survival.
Tsipras wrote how the discussions to stave off insolvency became “not only a method of achieving a better deal for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
During rollercoaster negotiations, the country found itself dangerously on the brink of leaving the eurozone.
On the line was not only the country's future but also the severe cutbacks required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, a move that threw Europe into a further existential crisis.
Even though the referendum was won resoundingly by voters against austerity, Tsipras was forced but to reject its outcome then agree to a rescue deal from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving creating a secondary currency and distributing coupons to pensioners, the leader knew that it was the end questioning him: “Is this for real?”
Enduring Criticism
In the book, Tsipras concludes that his former ally demonstrated himself “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras also claimed how Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock in some quarters, while the former minister has maintained a conspicuous quiet on the matter.
