Within his newly released personal account, named Ithaki, the ex- premier Tsipras pulls no punches as he reflects on that turbulent era during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's account, he selected that unorthodox academic Varoufakis to be his treasury head primarily because of his worldwide fame and his very persuasive skills when it came to public orator.
“In reality, he was, in reality, more of a personality rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims that Varoufakis had his own agenda that involved promoting his books and testing out his theories on the nation rather than truly fighting for the country's financial survival.
Tsipras noted how those negotiations to avoid insolvency were “not only a way of achieving a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously close to leaving the eurozone.
On the line lay not only Greece's future but also those punishing austerity policies required in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to find funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, a move that threw Europe into a further crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option but to ignore the result then agree to a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, the author concludes that his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate handling.”
He also claimed how Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating Grexit.
This account of events has been met with fury and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
