Within his newly released autobiography, named Ithaki, the former prime minister Tsipras does not hold back while he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, Tsipras appointed that maverick academic Varoufakis as his finance minister primarily because of his worldwide fame along with Varoufakis's very persuasive skills as a communicator.
“In reality, he was, actually, more of a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis had his own motives that included promoting his publications and testing out his economic models on Greece rather than genuinely advocating the country's economic stability.
He wrote how the negotiations to avoid bankruptcy became “not just a way to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the truth of his economic theories.”
Critical Negotiations
During tense negotiations, the country came dangerously close to exiting the eurozone.
At stake was not only Greece's future but also the harsh austerity policies demanded in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to secure financing from other sources, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those punitive conditions were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Even though the vote was won decisively by voters against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal with creditors which proved to be even harsher.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, the leader said he realised that it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, the author asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, and helped hardliners that were pushing for Grexit.
This account of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
