In a newly released personal account, named Ithaki, the former prime minister Tsipras pulls no punches as he revisits the turbulent era during Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's version, he selected the maverick economist Varoufakis to be the finance minister largely due to his global profile and his “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more like a star rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader suggests how Varoufakis possessed a personal agenda which involved advancing his books and testing out his own economic models using Greece rather than genuinely advocating the country's financial survival.
Tsipras explained that those negotiations to avoid bankruptcy became “not just a way to secure improved terms for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, the country found itself dangerously close to exiting the eurozone.
On the line was both the country's destiny but also those severe austerity measures demanded in return for rescue loans by international creditors.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Even though the referendum was carried decisively by those against the cuts, the prime minister had little option but to ignore the result and negotiate a bailout package with creditors that proved to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan involving establishing a parallel currency and distributing vouchers to pensioners, Tsipras said he realised it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
The retelling of history has provoked anger along with stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
