Within his newly released memoir, called Ithaki, the former premier Tsipras does not hold back as he reflects on the chaotic era during Greece's debt drama.
A Controversial Choice
As per Tsipras's recollections, he appointed that unorthodox economist Varoufakis as the treasury head largely due to the latter's international reputation along with his highly compelling skills as a public orator.
“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief had a personal motives that involved promoting Varoufakis's publications and testing out his own theories using Greece instead of truly fighting for the country's financial survival.
Tsipras noted how those talks to avoid bankruptcy were “not only a way to secure improved terms for Greece. They became an experiment, an historic opportunity to prove the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
At stake lay both Greece's future but also the severe cutbacks required in return for rescue loans from international creditors.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and Reversal
That summer, those excoriating conditions were subjected to a public vote, a move which threw the EU into deeper crisis of identity.
Although the referendum was carried resoundingly by those who opposed austerity, Tsipras had little option but to ignore the result then agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When the minister outlined a contingency plan involving establishing a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how his former ally demonstrated himself “unfit for an agreement demanding intricate and delicate management.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
The retelling of events has provoked anger along with shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
