In a freshly published memoir, titled Ithaki, the former prime minister Tsipras pulls no punches while he revisits that turbulent period of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's version, he appointed the maverick economist Varoufakis as the treasury head largely due to the latter's global profile along with his very persuasive skills as a communicator.
“He was, actually, more like a personality and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief had his own motives which involved promoting Varoufakis's books and testing out his own economic models using the nation rather than genuinely fighting for its economic stability.
He explained how the discussions to stave off bankruptcy became “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense negotiations, Greece came dangerously close to exiting the eurozone.
On the line was not only the country's destiny but also those harsh cutbacks demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the punitive conditions were put to a popular referendum, an action which plunged Europe into a further existential crisis.
Although the vote was won resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome and agree to a bailout package with creditors that turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of magazines globally … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving creating a parallel currency and distributing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes that Varoufakis had proved himself to be “unfit for a deal demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, while assisted hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
