In a recently unveiled autobiography, named Ithaki, the former prime minister Tsipras pulls no punches as he revisits that turbulent era during Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's version, Tsipras selected that maverick academic Varoufakis to be his treasury head primarily due to the latter's global profile and Varoufakis's “extremely attractive” abilities as a communicator.
“He was, in reality, more like a personality and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges how his finance chief had his own motives that included promoting his publications as well as experimenting with his economic models using the nation instead of truly fighting for its economic stability.
He explained how the discussions to stave off insolvency became “not only a way of achieving improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
Amid rollercoaster negotiations, the country found itself dangerously close to exiting the single currency area.
At stake lay not only Greece's destiny but also the harsh austerity measures demanded in exchange for financial aid from international creditors.
Failed Options
Efforts to secure funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh bailout terms were put to a public vote, a move which plunged the EU into a further existential crisis.
Even though the referendum was carried decisively by voters who opposed austerity, Tsipras was forced to reject its outcome then negotiate a rescue deal from foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … it seemed he relished the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency and issuing coupons to pensioners, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, Tsipras concludes how his former ally had proved himself “unfit for an agreement that required complex and sensitive management.”
He further claimed how his aggressive style made him more and more alone among peers, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked fury and stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence on the matter.
