Within his newly released personal account, titled Ithaki, the ex- prime minister Tsipras spares no criticism while he examines the chaotic era of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, Tsipras chose that unorthodox economist Varoufakis to be his treasury head largely because of the latter's global profile and his highly compelling skills when it came to communicator.
“He was, actually, more of a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras claims that his finance chief had a personal agenda that included promoting Varoufakis's publications and experimenting with his game theories on Greece instead of truly fighting for the country's financial survival.
Tsipras explained that the talks to avoid insolvency became “not just a method of achieving a better deal for Greece. They became a test, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came perilously on the brink of exiting the single currency area.
On the line lay not only Greece's destiny and those harsh cutbacks demanded in exchange for bailout funds by international creditors.
Failed Options
Attempts to find funds elsewhere, such as an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a public vote, an action that plunged the EU into a further crisis of identity.
Even though the referendum was won decisively by voters who opposed the cuts, the prime minister had little option to ignore the result and agree to a rescue deal with creditors which turned out to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who drew publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, Tsipras knew that it was the end questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate handling.”
Tsipras further claimed that Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
