In a newly released memoir, titled Ithaki, the ex- prime minister Tsipras spares no criticism as he revisits the chaotic era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's version, Tsipras selected the unorthodox economist Varoufakis to be his finance minister largely because of his international reputation along with his “extremely attractive” abilities as a speaker.
“He was, in reality, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges that his finance chief had his own agenda which included advancing his publications and experimenting with his own game theories using Greece rather than truly fighting for its financial survival.
He explained how those negotiations to prevent bankruptcy were “not just a way to secure a better deal for Greece. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, the country came dangerously on the brink of exiting the single currency area.
On the line lay both Greece's destiny but also the harsh cutbacks required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those harsh bailout terms were put to a public vote, an action that threw the EU into a deeper existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras was forced to ignore the result then negotiate a rescue deal from creditors that turned out to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished his new role.”
After the minister proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to pensioners, Tsipras knew it was game over questioning him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unfit for a deal demanding intricate and delicate handling.”
He also claimed that his confrontational style made him more and more alone among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
