In a freshly published personal account, called Ithaki, the former prime minister Tsipras pulls no punches while he reflects on the turbulent era during Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's recollections, Tsipras appointed that maverick academic Varoufakis to be the treasury head primarily because of his global profile and his highly compelling abilities as a speaker.
“In reality, he was, actually, more like a personality rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how Varoufakis possessed a personal agenda that included advancing his publications as well as experimenting with his own theories on Greece instead of genuinely fighting for its financial survival.
He wrote that the talks to avoid insolvency were “not only a method to secure improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
On the line was not only the country's future and the punishing cutbacks required in exchange for bailout funds by international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent appeal to Russia to buy Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those excoriating conditions were subjected to a popular referendum, a move that threw Europe into a deeper existential crisis.
Even though the vote was won decisively by voters who opposed the cuts, the prime minister was forced but to reject its outcome then negotiate a rescue deal from foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and distributing vouchers to retirees, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and assisted hawks who were pushing for Grexit.
This retelling of history has been met with anger along with stunned disbelief in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
