In a freshly published autobiography, named Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's recollections, he chose the unorthodox academic Varoufakis as the finance minister mainly because of the latter's international reputation and his “extremely attractive” skills as a communicator.
“He was, truthfully, more of a personality rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had a personal motives which involved promoting his books as well as testing out his own economic models using Greece instead of truly advocating the country's economic stability.
Tsipras noted that those talks to prevent insolvency were “not just a method to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile negotiations, Greece found itself perilously on the brink of exiting the eurozone.
On the line lay both the country's destiny and the severe cutbacks required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a public vote, a move which threw the EU into further existential crisis.
Although the vote was carried decisively by voters who opposed the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras also wrote that his confrontational style left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating Grexit.
This retelling of history has provoked fury along with shock among certain groups, while the former minister has so far maintained a deafening silence on the matter.
