In a freshly published memoir, titled Ithaki, the ex- leader Tsipras pulls no punches while he examines that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, he selected the maverick economist Varoufakis to be his treasury head primarily due to the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own motives that involved advancing his books as well as experimenting with his own economic models using the nation rather than truly advocating its economic stability.
Tsipras explained how the talks to avoid insolvency were “not only a way of achieving improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also the severe cutbacks demanded in exchange for bailout funds by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a popular referendum, an action that plunged the EU into a further existential crisis.
Although the vote was carried decisively by voters who opposed austerity, Tsipras had little option but to ignore the result then negotiate a bailout package from creditors that turned out to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
When the minister proposed a contingency plan that included creating a secondary currency and distributing coupons to pensioners, the leader knew it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal that required intricate and delicate management.”
He further claimed how his confrontational approach made him increasingly isolated with colleagues, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
This account of history has been met with anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
