Within his freshly published memoir, titled Ithaki, the former prime minister Tsipras does not hold back as he revisits that turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, Tsipras chose that unorthodox academic Varoufakis as his treasury head largely due to his international reputation along with his “extremely attractive” skills as a public orator.
“He was, actually, more like a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests that Varoufakis possessed a personal agenda which included advancing Varoufakis's books as well as experimenting with his own game theories on Greece rather than truly fighting for its economic stability.
Tsipras explained that those talks to prevent insolvency were “not just a way of achieving improved terms for the country. They were an experiment, a monumental chance to prove the validity of his theories.”
High-Stakes Talks
Amid tense discussions, the country came perilously close to exiting the single currency area.
On the line was not only the country's future and those severe austerity policies required in return for bailout funds by foreign lenders.
Failed Options
Attempts to find financing elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the harsh conditions were subjected to a public vote, a move that plunged the EU into further crisis of identity.
Even though the vote was won resoundingly by voters against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal with foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the book, Tsipras asserts how his former ally had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
He further wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were pushing for Grexit.
The account of events has provoked fury and stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
