In a newly released personal account, called Ithaki, the ex- premier Tsipras spares no criticism while he reflects on the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras selected that maverick academic Varoufakis to be his finance minister largely due to his worldwide fame and Varoufakis's highly compelling skills as a communicator.
“He was, in reality, more like a celebrity and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader claims that his finance chief had his own agenda that included promoting Varoufakis's publications and testing out his own economic models on Greece instead of genuinely advocating its economic stability.
Tsipras noted that the negotiations to stave off insolvency were “not only a way of achieving improved terms for the country. They became a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During volatile discussions, Greece came perilously on the brink of exiting the eurozone.
At stake was both Greece's future and those harsh austerity policies required in return for bailout funds by international creditors.
Failed Alternatives
Attempts to find funds from other sources, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a popular referendum, a move which plunged the EU into a further existential crisis.
Although the referendum was won resoundingly by those against austerity, the prime minister was forced to ignore the result and agree to a bailout package from creditors which proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to pensioners, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement that required intricate and delicate management.”
He further claimed that his aggressive style left him increasingly isolated among peers, endangered the country, and assisted hardliners who were pushing for Grexit.
The account of events has been met with anger along with stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
