In a recently unveiled memoir, titled Ithaki, the ex- premier Tsipras spares no criticism as he examines that chaotic era of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's account, he selected that unorthodox economist Varoufakis to be his finance minister primarily due to his global profile along with his “extremely attractive” skills as a public orator.
“He was, in reality, more like a personality rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader claims how Varoufakis possessed his own agenda that involved advancing Varoufakis's publications and experimenting with his own game theories on Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote how the negotiations to prevent bankruptcy were “not only a method to secure a better deal for Greece. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself dangerously close to exiting the single currency area.
On the line was not only the country's future but also the harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those harsh bailout terms were subjected to a public vote, an action that threw the EU into deeper existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, the prime minister had little option to reject its outcome then negotiate a bailout package from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over questioning him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis had proved himself “unfit for a deal demanding complex and sensitive management.”
Tsipras further wrote that Varoufakis's aggressive approach left him more and more alone among peers, endangered the country, while assisted hawks who were pushing for Grexit.
The retelling of history has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
