In a freshly published personal account, titled Ithaki, the ex- premier Tsipras pulls no punches while he reflects on the turbulent period during Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, he appointed that unorthodox economist Varoufakis as the treasury head largely because of the latter's international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more like a star rather than an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief had a personal agenda which included promoting Varoufakis's publications as well as experimenting with his theories on the nation instead of genuinely advocating the country's financial survival.
He noted how the negotiations to stave off insolvency were “not just a way of achieving a better deal for Greece. They were a test, an historic opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
During tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny but also the severe austerity measures demanded in return for rescue loans by foreign lenders.
Failed Options
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the harsh conditions were put to a public vote, an action which threw the EU into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option to ignore the result and negotiate a rescue deal with foreign lenders which proved to be tougher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required intricate and sensitive management.”
He further claimed how Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hawks that were advocating a Greek exit from the euro.
This account of events has provoked fury and stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence regarding these claims.
