In a recently unveiled autobiography, named Ithaki, the ex- premier Tsipras does not hold back as he reflects on that chaotic period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's version, he chose that maverick academic Varoufakis to be the treasury head largely due to the latter's global profile along with his “extremely attractive” skills as a speaker.
“In reality, he was, actually, more like a star rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges how his finance chief possessed his own agenda which included promoting his publications as well as experimenting with his theories using the nation rather than truly advocating its economic stability.
Tsipras wrote how those discussions to avoid insolvency became “not only a method to secure improved terms for the country. They became a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During tense discussions, Greece found itself dangerously on the brink of exiting the eurozone.
At stake was both Greece's future and the severe austerity policies required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were subjected to a public vote, an action that plunged Europe into deeper existential crisis.
Even though the referendum was won resoundingly by voters against the cuts, Tsipras was forced to ignore the result and agree to a bailout package with creditors which proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency and issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and sensitive handling.”
He further wrote that Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The account of history has been met with anger along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
