Within his freshly published memoir, called Ithaki, the former prime minister Tsipras pulls no punches while he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
In Tsipras's recollections, he chose the unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation along with his highly compelling abilities as a public orator.
“In reality, he was, actually, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis possessed his own motives that involved promoting his books as well as testing out his own theories using the nation rather than genuinely advocating its financial survival.
He wrote that those talks to prevent bankruptcy were “not only a way of achieving a better deal for Greece. They were an experiment, an historic opportunity to prove the validity of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came perilously on the brink of leaving the eurozone.
At stake lay not only Greece's future and those severe austerity measures demanded in return for rescue loans from foreign lenders.
Failed Options
Attempts to find funds elsewhere, such as a desperate plea to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged the EU into a further existential crisis.
Although the vote was won decisively by voters who opposed the cuts, Tsipras had little option to ignore the result then agree to a bailout package from creditors which turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
He also wrote how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
The retelling of history has been met with fury along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
