Within his newly released memoir, called Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on that turbulent era of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, he appointed the unorthodox economist Varoufakis to be the finance minister largely due to the latter's international reputation and his “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims that his finance chief had a personal agenda which included promoting his publications and experimenting with his own theories using the nation instead of truly fighting for the country's financial survival.
Tsipras wrote that those talks to prevent insolvency became “not only a way of achieving improved terms for Greece. They were an experiment, an historic chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid tense discussions, the country came dangerously on the brink of leaving the eurozone.
On the line was not only Greece's future and the severe cutbacks required in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the excoriating bailout terms were put to a public vote, a move which plunged Europe into a deeper existential crisis.
Even though the vote was carried resoundingly by voters against the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the book, the author concludes that Varoufakis had proved himself “unsuitable for a deal that required intricate and delicate management.”
He further claimed that Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief in some quarters, while the former minister has maintained a conspicuous quiet regarding these claims.
