Within his freshly published memoir, titled Ithaki, the former leader Tsipras pulls no punches while he examines the chaotic era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected the maverick academic Varoufakis as his treasury head mainly because of the latter's international reputation and his very persuasive abilities when it came to public orator.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Agendas
Tsipras claims that Varoufakis had his own motives that involved advancing Varoufakis's books and testing out his game theories on Greece rather than genuinely advocating its economic stability.
He explained how those talks to prevent insolvency were “not just a method of achieving improved terms for Greece. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously on the brink of leaving the eurozone.
On the line was not only Greece's destiny but also the harsh austerity policies required in exchange for financial aid by international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, the punitive conditions were put to a public vote, a move which plunged Europe into a deeper existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras was forced to ignore the result and agree to a bailout package with creditors that proved to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
After the minister outlined a backup strategy that included creating a parallel currency and distributing vouchers to pensioners, the leader knew that it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
He further wrote that his aggressive style made him more and more alone with colleagues, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
