In a freshly published personal account, called Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that turbulent period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras chose that unorthodox economist Varoufakis as the treasury head largely due to the latter's worldwide fame along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more like a personality and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims how Varoufakis had a personal agenda which included promoting Varoufakis's books and experimenting with his own theories using the nation rather than truly fighting for the country's economic stability.
Tsipras explained that the talks to prevent bankruptcy were “not only a way to secure improved terms for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, Greece came dangerously close to leaving the single currency area.
On the line was not only Greece's future but also the severe austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those punitive conditions were put to a public vote, an action which threw the EU into a further existential crisis.
Even though the referendum was carried decisively by those against the cuts, Tsipras was forced but to reject its outcome then negotiate a bailout package with creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency and issuing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal that required intricate and delicate handling.”
He further wrote that his aggressive approach left him more and more alone with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
This retelling of events has provoked anger along with stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
