In a freshly published autobiography, called Ithaki, the ex- premier Tsipras does not hold back as he revisits that turbulent period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's version, he appointed the unorthodox academic Varoufakis to be his finance minister mainly because of his global profile and Varoufakis's highly compelling skills as a communicator.
“He was, truthfully, more of a personality and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief had his own motives which included promoting Varoufakis's books and testing out his economic models on the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote how those talks to avoid insolvency became “not only a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake lay not only Greece's future and those punishing austerity policies demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, a move which threw Europe into further crisis of identity.
Although the referendum was won resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with creditors that proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing vouchers to retirees, the leader said he realised that it was the end and asked him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras asserts how Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
The account of events has provoked anger along with stunned disbelief among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
