Within his newly released memoir, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on that chaotic era during Greece's debt drama.
A Controversial Appointment
In the ex-PM's version, Tsipras chose that maverick academic Varoufakis to be his treasury head mainly due to his international reputation along with his very persuasive abilities as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economist,” stated Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief had a personal agenda that included promoting his books and testing out his game theories on the nation rather than truly fighting for the country's economic stability.
He wrote how the negotiations to stave off insolvency were “not just a method to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came dangerously on the brink of exiting the eurozone.
At stake was not only Greece's destiny and those severe austerity policies required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and Reversal
That summer, the harsh bailout terms were put to a public vote, an action which plunged the EU into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result and agree to a bailout package from creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing coupons to retirees, the leader knew it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement that required complex and delicate management.”
He also claimed that Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The retelling of events has provoked anger and stunned disbelief in some quarters, while the former minister has so far kept a deafening silence on the matter.
