Within his freshly published autobiography, titled Ithaki, the ex- premier Tsipras spares no criticism while he reflects on that turbulent period during Greece's debt drama.
A Controversial Choice
According to Tsipras's account, Tsipras appointed that maverick academic Varoufakis to be his treasury head largely because of the latter's worldwide fame along with his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more like a star rather than an economic expert,” wrote Tsipras.
Clashing Priorities
The former leader claims that Varoufakis possessed his own agenda that involved advancing Varoufakis's books as well as testing out his economic models on the nation instead of truly fighting for its financial survival.
Tsipras noted how the discussions to avoid insolvency were “not just a way of achieving a better deal for the country. They were an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece came perilously close to exiting the eurozone.
At stake was both Greece's future and the harsh austerity policies required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating conditions were put to a public vote, an action that plunged the EU into a deeper existential crisis.
Even though the referendum was won decisively by those against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing coupons to retirees, Tsipras said he realised it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal demanding intricate and sensitive handling.”
He also claimed how his aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
