In a newly released memoir, called Ithaki, the ex- premier Tsipras spares no criticism as he revisits that turbulent period during Greece's financial crisis.
A Controversial Choice
In Tsipras's version, he chose the maverick academic Varoufakis to be his finance minister largely due to his international reputation along with his highly compelling skills when it came to communicator.
“In reality, he was, actually, more like a personality rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed his own agenda which included promoting Varoufakis's publications as well as testing out his economic models on Greece instead of genuinely fighting for its financial survival.
Tsipras noted how the discussions to stave off insolvency were “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, Greece found itself dangerously close to exiting the single currency area.
At stake was not only the country's future but also those severe cutbacks demanded in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, an action which plunged Europe into further existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras had little option to ignore the result and negotiate a rescue deal with creditors which proved to be tougher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader knew it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author asserts that Varoufakis had proved himself “unfit for a deal that required complex and sensitive handling.”
Tsipras further wrote how his confrontational style made him increasingly isolated among peers, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
The retelling of events has provoked anger and shock in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
