Within his recently unveiled personal account, titled Ithaki, the ex- prime minister Tsipras does not hold back as he revisits the chaotic period during Greece's financial crisis.
A Controversial Choice
In Tsipras's version, Tsipras appointed the maverick economist Varoufakis to be the treasury head largely because of the latter's international reputation along with Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras claims that his finance chief had his own agenda that included advancing his publications and experimenting with his own economic models using Greece rather than genuinely advocating its financial survival.
He wrote how those discussions to prevent insolvency became “not just a way of achieving a better deal for Greece. They became a test, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During tense negotiations, the country found itself dangerously close to exiting the single currency area.
At stake lay both the country's future but also the harsh cutbacks required in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, the excoriating bailout terms were subjected to a public vote, an action which threw the EU into a further crisis of identity.
Even though the vote was carried resoundingly by those against the cuts, the prime minister had little option but to reject its outcome and agree to a bailout package from creditors which proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After the minister outlined a contingency plan involving establishing a parallel currency and distributing coupons to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required complex and delicate management.”
He also claimed how Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of events has provoked anger along with shock in some quarters, while the former minister has kept a deafening silence regarding these claims.
