In a freshly published personal account, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that turbulent period during Greece's debt drama.
An Unconventional Appointment
As per Tsipras's version, he appointed the maverick academic Varoufakis as his finance minister largely due to the latter's global profile and Varoufakis's highly compelling abilities when it came to speaker.
“In reality, he was, in reality, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges that his finance chief possessed a personal motives that included advancing Varoufakis's publications and testing out his theories using Greece instead of genuinely fighting for its financial survival.
Tsipras wrote how the negotiations to avoid insolvency were “not just a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense discussions, the country found itself perilously close to exiting the single currency area.
On the line lay both Greece's future but also the harsh austerity policies required in exchange for financial aid by international creditors.
Failed Alternatives
Attempts to find financing from other sources, including an urgent appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Even though the vote was won decisively by voters against austerity, Tsipras had little option but to ignore the result and negotiate a rescue deal with creditors that proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, the leader said he realised that it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, the author asserts that his former ally demonstrated himself to be “unfit for an agreement demanding intricate and delicate management.”
He further wrote how his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
