In a newly released personal account, titled Ithaki, the ex- premier Tsipras spares no criticism while he revisits that turbulent era of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, he chose the unorthodox economist Varoufakis as the treasury head mainly due to the latter's global profile and Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, actually, more of a star and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims how Varoufakis possessed his own agenda which involved advancing his books and experimenting with his own economic models using Greece rather than genuinely advocating the country's financial survival.
He wrote how the talks to prevent insolvency became “not only a method to secure improved terms for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was not only Greece's destiny but also those severe austerity policies required in exchange for financial aid by international creditors.
Failed Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh bailout terms were subjected to a public vote, an action which plunged Europe into deeper existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, the prime minister had little option but to ignore the result then agree to a bailout package from creditors that proved to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, Tsipras knew it was game over questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras further wrote that his confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This retelling of history has provoked fury and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
