In a newly released memoir, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits that turbulent period during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras appointed the maverick academic Varoufakis as the treasury head primarily because of his worldwide fame and his very persuasive abilities as a public orator.
“He was, actually, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader claims how his finance chief had a personal agenda that included promoting Varoufakis's publications as well as experimenting with his economic models using the nation rather than genuinely fighting for its economic stability.
Tsipras noted that the negotiations to prevent insolvency were “not just a method to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came perilously close to exiting the eurozone.
On the line was not only Greece's destiny and those punishing austerity policies required in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
That summer, the harsh conditions were put to a public vote, an action that plunged Europe into a further crisis of identity.
Although the referendum was carried decisively by voters against the cuts, the prime minister was forced to ignore the result then agree to a rescue deal from creditors which proved to be more severe.
Final Straw
The ex-PM claimed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency and distributing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself “unfit for a deal demanding complex and delicate management.”
Tsipras also claimed how Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were advocating Grexit.
This account of history has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
