Within his newly released autobiography, called Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, he appointed the maverick economist Varoufakis to be the treasury head primarily due to the latter's worldwide fame and his “extremely attractive” abilities when it came to public orator.
“In reality, he was, in reality, more of a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims how Varoufakis had a personal agenda which involved promoting his publications and testing out his own theories on Greece rather than truly advocating its financial survival.
Tsipras explained how the discussions to avoid bankruptcy were “not only a way to secure improved terms for the country. They were an experiment, an historic chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself perilously close to exiting the single currency area.
At stake was not only the country's destiny and the punishing austerity policies demanded in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, those punitive conditions were put to a public vote, a move which plunged the EU into a deeper crisis of identity.
Although the vote was won resoundingly by voters who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal with foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the face of the talks, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing vouchers to pensioners, Tsipras knew it was the end questioning him: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts that his former ally demonstrated himself “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed how Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of events has been met with fury and shock in some quarters, while the former minister has kept a deafening silence regarding these claims.
