In a recently unveiled autobiography, named Ithaki, the former premier Tsipras does not hold back as he examines that chaotic period of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, Tsipras appointed the maverick economist Varoufakis as his finance minister primarily because of his worldwide fame and his very persuasive skills as a speaker.
“He was, truthfully, more like a celebrity rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had his own agenda that involved promoting his books as well as experimenting with his game theories on the nation instead of truly advocating its economic stability.
He noted how those negotiations to prevent bankruptcy were “not just a way of achieving a better deal for the country. They became a test, an historic chance to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself dangerously close to leaving the eurozone.
On the line lay both the country's destiny but also the harsh austerity measures required in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, including a desperate plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating conditions were put to a public vote, a move that plunged the EU into deeper existential crisis.
Even though the referendum was won resoundingly by those against austerity, Tsipras had little option to reject its outcome then agree to a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy that included creating a parallel currency and issuing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, while helped hawks that were pushing for Grexit.
This account of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
