Within his recently unveiled memoir, titled Ithaki, the former leader Tsipras pulls no punches while he revisits that turbulent period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, Tsipras chose the maverick economist Varoufakis as his treasury head largely because of his international reputation along with his “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more of a personality rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges how his finance chief had a personal motives which involved promoting his publications and experimenting with his own economic models using the nation instead of truly fighting for the country's economic stability.
He noted how those negotiations to stave off insolvency were “not just a way of achieving a better deal for the country. They were a test, a monumental chance to prove the truth of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself perilously on the brink of leaving the eurozone.
On the line lay both Greece's future but also those punishing cutbacks demanded in return for financial aid by international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were put to a public vote, an action that threw the EU into deeper existential crisis.
Even though the referendum was won decisively by voters against the cuts, the prime minister was forced but to ignore the result and agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
He also wrote how his aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has provoked anger along with shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
