Within his freshly published personal account, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits that chaotic era of Greece's debt drama.
A Controversial Choice
According to the ex-PM's account, he selected the maverick economist Varoufakis as his treasury head mainly due to his global profile and Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, actually, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis possessed his own agenda which involved promoting his books and testing out his theories using the nation instead of genuinely advocating the country's economic stability.
Tsipras wrote that the talks to prevent insolvency were “not only a method of achieving a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
During tense discussions, the country found itself dangerously close to leaving the single currency area.
At stake lay both the country's destiny but also those severe austerity measures required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those harsh conditions were put to a popular referendum, an action that threw Europe into further crisis of identity.
Even though the referendum was carried resoundingly by voters against the cuts, Tsipras was forced to ignore the result then agree to a bailout package with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who attracted media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras concludes how his former ally had proved himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
