Within his recently unveiled autobiography, named Ithaki, the former leader Tsipras does not hold back while he reflects on that turbulent era of Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras appointed the maverick academic Varoufakis as the treasury head largely due to his international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, truthfully, more like a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader alleges how his finance chief had a personal motives that included advancing Varoufakis's books and testing out his own theories on the nation rather than genuinely advocating the country's economic stability.
He noted how those negotiations to prevent insolvency became “not only a way to secure improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came dangerously close to leaving the eurozone.
At stake lay not only Greece's future and those harsh cutbacks required in exchange for financial aid from international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek bonds, were rejected.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were put to a popular referendum, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister was forced to reject its outcome then agree to a rescue deal from creditors that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author asserts how his former ally had proved himself “unfit for an agreement that required complex and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for a Greek exit from the euro.
The account of history has been met with anger and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
