In a freshly published personal account, called Ithaki, the former premier Tsipras spares no criticism as he examines that chaotic period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, he appointed the maverick academic Varoufakis to be the treasury head mainly due to his global profile and Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more like a personality rather than an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief had a personal agenda that involved promoting Varoufakis's books and testing out his own game theories using Greece rather than genuinely advocating its economic stability.
He noted how those negotiations to prevent insolvency became “not only a method to secure improved terms for the country. They were a test, an historic chance to prove the truth of his ideas.”
Critical Negotiations
Amid volatile negotiations, Greece found itself dangerously on the brink of leaving the eurozone.
On the line lay both the country's destiny but also those severe austerity policies demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the punitive conditions were subjected to a public vote, an action which threw Europe into a deeper existential crisis.
Although the referendum was won resoundingly by voters against austerity, Tsipras had little option but to reject its outcome then agree to a bailout package with creditors that proved to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency and distributing vouchers to pensioners, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
He further wrote how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
The account of events has provoked fury along with shock among certain groups, while Varoufakis has so far kept a deafening silence on the matter.
