In a newly released autobiography, called Ithaki, the ex- prime minister Tsipras does not hold back as he revisits the chaotic period during Greece's economic turmoil.
An Unconventional Choice
In Tsipras's account, he appointed the maverick economist Varoufakis as the treasury head mainly due to his worldwide fame along with Varoufakis's very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that his finance chief had a personal motives that involved advancing Varoufakis's publications and experimenting with his game theories using the nation rather than genuinely advocating its financial survival.
Tsipras noted how those negotiations to prevent bankruptcy became “not only a way to secure improved terms for Greece. They were an experiment, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously close to exiting the eurozone.
On the line lay both the country's future but also the punishing austerity measures required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those punitive conditions were put to a popular referendum, a move which plunged Europe into a further existential crisis.
Although the referendum was won decisively by those who opposed austerity, Tsipras had little option but to ignore the result then agree to a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency as well as issuing vouchers to pensioners, the leader said he realised it was game over questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras asserts that his former ally had proved himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He further claimed how his aggressive approach made him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for Grexit.
This account of history has provoked anger and shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
