In a freshly published personal account, named Ithaki, the former leader Tsipras pulls no punches while he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed that unorthodox academic Varoufakis to be the finance minister mainly because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more like a star and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief had a personal motives that involved advancing Varoufakis's books as well as testing out his game theories on Greece rather than truly fighting for its financial survival.
Tsipras explained how the negotiations to avoid insolvency were “not just a method of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his theories.”
High-Stakes Talks
Amid tense discussions, the country came dangerously on the brink of exiting the single currency area.
On the line was both Greece's future but also the punishing austerity policies demanded in return for bailout funds by foreign lenders.
Failed Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive conditions were subjected to a popular referendum, an action that threw Europe into further crisis of identity.
Although the referendum was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome then negotiate a rescue deal with foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the man who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, the author asserts how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate management.”
He also wrote that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, while helped hardliners that were advocating Grexit.
The retelling of events has provoked anger along with shock in some quarters, while the former minister has kept a deafening silence on the matter.
