Within his freshly published autobiography, named Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that chaotic era of Greece's debt drama.
An Unconventional Choice
As per Tsipras's version, he chose the maverick economist Varoufakis to be the finance minister primarily because of the latter's worldwide fame and his highly compelling skills when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras claims that his finance chief had a personal agenda which included promoting his publications and experimenting with his own economic models on Greece instead of genuinely advocating its economic stability.
He wrote how the discussions to stave off insolvency became “not only a method of achieving improved terms for the country. They became an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Talks
During tense discussions, Greece came dangerously close to exiting the single currency area.
On the line was not only Greece's future and those severe cutbacks demanded in return for rescue loans by international creditors.
Failed Options
Attempts to find financing from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive conditions were put to a popular referendum, a move which threw the EU into a further existential crisis.
Although the referendum was won decisively by those against austerity, Tsipras had little option to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who graced the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
This retelling of history has provoked fury and shock in some quarters, while Varoufakis has kept a deafening silence on the matter.
