Within his freshly published personal account, titled Ithaki, the former leader Tsipras does not hold back as he reflects on the turbulent era during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, he chose the maverick academic Varoufakis as the treasury head primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader claims that Varoufakis possessed a personal agenda that included promoting Varoufakis's books and experimenting with his economic models on the nation instead of genuinely advocating the country's financial survival.
Tsipras wrote that the negotiations to avoid bankruptcy were “not only a method to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
During tense negotiations, Greece found itself perilously on the brink of exiting the eurozone.
At stake lay not only Greece's destiny and the punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, a move which threw Europe into deeper existential crisis.
Even though the vote was carried decisively by those against austerity, the prime minister was forced to reject its outcome and negotiate a bailout package from foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, the leader said he realised it was the end and asked him: “Are you serious?”
Lasting Criticism
In the book, the author concludes that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
He further claimed how his aggressive style made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
