Within his newly released personal account, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on the turbulent period during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, he chose the unorthodox economist Varoufakis to be his treasury head primarily because of the latter's global profile and his very persuasive abilities as a speaker.
“He was, truthfully, more of a celebrity and less of an economic expert,” stated Tsipras.
Conflicting Priorities
The former leader suggests that his finance chief had a personal motives which included advancing Varoufakis's publications as well as testing out his own theories using Greece instead of truly advocating its financial survival.
Tsipras explained that those negotiations to prevent insolvency were “not just a method of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line was not only Greece's destiny and the severe austerity policies demanded in return for bailout funds from foreign lenders.
Failed Options
Efforts to secure financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, went unanswered.
Helping the indebted country was equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, those harsh conditions were put to a popular referendum, an action which plunged the EU into a further crisis of identity.
Although the vote was won resoundingly by voters against austerity, Tsipras was forced to ignore the result then negotiate a bailout package with creditors that turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the covers of publications globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised it was the end questioning him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote how Varoufakis's confrontational style left him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for Grexit.
This retelling of history has been met with anger along with shock in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
