In a recently unveiled personal account, called Ithaki, the former prime minister Tsipras pulls no punches as he revisits that chaotic era of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's recollections, he appointed that maverick academic Varoufakis to be his finance minister largely because of his international reputation and Varoufakis's highly compelling skills as a public orator.
“He was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims that his finance chief had his own motives that included promoting his publications as well as experimenting with his own game theories on Greece instead of truly advocating the country's financial survival.
He wrote that the talks to avoid bankruptcy were “not only a method of achieving a better deal for the country. They became a test, an historic chance to prove the validity of his ideas.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's destiny and those severe cutbacks demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a public vote, a move that threw Europe into a deeper existential crisis.
Although the referendum was carried decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome and agree to a rescue deal with creditors that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was game over questioning him: “Is this for real?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras further claimed how his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with anger along with shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
