Within his freshly published memoir, titled Ithaki, the former premier Tsipras does not hold back as he reflects on that turbulent period of Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed the maverick academic Varoufakis as the treasury head mainly due to his global profile and Varoufakis's very persuasive skills as a public orator.
“In reality, he was, actually, more of a personality rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
The former leader suggests how his finance chief possessed his own motives which involved promoting Varoufakis's publications and testing out his own theories using Greece rather than truly advocating the country's economic stability.
He noted how the talks to stave off bankruptcy were “not just a way of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came perilously close to exiting the single currency area.
On the line was both the country's future and the severe austerity measures required in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those harsh conditions were put to a popular referendum, a move that plunged Europe into further crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome then agree to a rescue deal with creditors that proved to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving creating a secondary currency as well as distributing coupons to pensioners, the leader said he realised it was game over and asked him: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes that Varoufakis had proved himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras further wrote that his aggressive approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger along with shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
