In a freshly published autobiography, titled Ithaki, the former leader Tsipras spares no criticism as he revisits that chaotic period during Greece's debt drama.
A Controversial Choice
According to Tsipras's account, Tsipras appointed the maverick economist Varoufakis to be the treasury head mainly because of the latter's worldwide fame along with his “extremely attractive” skills when it came to communicator.
“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief had a personal motives that involved advancing Varoufakis's publications and experimenting with his game theories on the nation rather than truly advocating its economic stability.
He wrote that those negotiations to prevent bankruptcy became “not only a method to secure improved terms for the country. They became a test, a monumental chance to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously close to leaving the single currency area.
On the line was not only Greece's future and the severe austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the punitive bailout terms were put to a public vote, an action which plunged Europe into a deeper existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option but to ignore the result then negotiate a bailout package with foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of publications globally … it seemed he relished his new role.”
When the minister outlined a contingency plan involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader said he realised that it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate handling.”
He further claimed that his confrontational approach made him more and more alone among peers, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has provoked anger and shock among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.