In a recently unveiled memoir, named Ithaki, the former leader Tsipras spares no criticism as he examines the chaotic era of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, Tsipras appointed that maverick economist Varoufakis to be the treasury head largely because of the latter's worldwide fame along with his “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more like a celebrity rather than an economist,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis possessed a personal agenda which involved advancing Varoufakis's books as well as testing out his own theories using the nation instead of genuinely advocating the country's economic stability.
Tsipras explained that the discussions to prevent insolvency became “not only a method to secure a better deal for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
During tense discussions, the country came dangerously on the brink of exiting the eurozone.
On the line was not only Greece's future but also those harsh austerity measures required in exchange for rescue loans from international creditors.
Failed Options
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, a move which threw Europe into further existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister had little option to ignore the result then negotiate a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how his aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for Grexit.
This account of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
