Within his freshly published autobiography, named Ithaki, the former prime minister Tsipras spares no criticism while he revisits that chaotic era during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he appointed the unorthodox economist Varoufakis to be his treasury head mainly because of his global profile and his very persuasive abilities as a speaker.
“In reality, he was, truthfully, more of a personality and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief had his own agenda which involved advancing Varoufakis's books and testing out his own economic models on Greece instead of genuinely fighting for its economic stability.
He explained that the talks to prevent bankruptcy were “not just a method of achieving improved terms for Greece. They were an experiment, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came perilously on the brink of leaving the eurozone.
At stake lay both Greece's future but also those punishing austerity policies demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those punitive conditions were put to a public vote, an action which threw Europe into further existential crisis.
Even though the referendum was won resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome and agree to a bailout package with creditors which proved to be even harsher.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan that included creating a parallel currency and issuing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras asserts how his former ally had proved himself “unsuitable for a deal that required intricate and sensitive management.”
He also wrote how his confrontational approach made him more and more alone with colleagues, endangered the country, and helped hawks that were advocating Grexit.
This account of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
