In a newly released memoir, named Ithaki, the former prime minister Tsipras does not hold back as he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's version, Tsipras appointed the unorthodox academic Varoufakis as his finance minister primarily due to the latter's global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more like a personality rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests how Varoufakis possessed a personal motives which included advancing his books as well as testing out his own game theories using Greece instead of truly advocating the country's financial survival.
Tsipras wrote that the talks to stave off insolvency were “not just a method to secure improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense discussions, Greece found itself perilously close to exiting the single currency area.
On the line lay not only Greece's future but also those punishing austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those harsh bailout terms were put to a popular referendum, an action that threw the EU into further existential crisis.
Even though the vote was won resoundingly by voters against the cuts, the prime minister had little option to reject its outcome then agree to a bailout package from creditors that proved to be tougher.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras further claimed how his confrontational style left him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were advocating Grexit.
The account of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
