In a freshly published personal account, called Ithaki, the ex- prime minister Tsipras spares no criticism as he reflects on that turbulent period during Greece's debt drama.
An Unconventional Appointment
In Tsipras's recollections, he appointed the unorthodox academic Varoufakis as the finance minister primarily due to his worldwide fame and Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, in reality, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras claims how Varoufakis had his own agenda which involved advancing Varoufakis's books and experimenting with his own theories on Greece instead of truly advocating its economic stability.
He wrote how the negotiations to prevent insolvency were “not only a way of achieving improved terms for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself perilously close to exiting the eurozone.
On the line was both the country's future and those severe austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
That summer, the punitive conditions were put to a public vote, a move that plunged Europe into further crisis of identity.
Even though the referendum was won resoundingly by voters against the cuts, Tsipras had little option to reject its outcome then agree to a bailout package from foreign lenders that turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, Tsipras knew that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes that his former ally had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
He further claimed that Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This account of events has provoked fury and shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
