In a recently unveiled memoir, called Ithaki, the former premier Tsipras does not hold back as he reflects on the turbulent era of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, Tsipras chose the unorthodox economist Varoufakis to be the finance minister primarily due to the latter's worldwide fame and Varoufakis's “extremely attractive” skills as a speaker.
“He was, truthfully, more of a star rather than an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis had a personal agenda which involved promoting his publications as well as testing out his own economic models using the nation rather than genuinely advocating the country's financial survival.
He wrote that the discussions to stave off insolvency were “not only a method to secure improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his ideas.”
High-Stakes Talks
During volatile discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was not only Greece's future but also the punishing austerity measures demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Although the referendum was won resoundingly by voters against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing coupons to retirees, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal that required complex 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.
The account of events has been met with anger along with shock among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
