In a recently unveiled memoir, named Ithaki, the former leader Tsipras pulls no punches as he revisits the turbulent period of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, he chose that maverick economist Varoufakis to be the treasury head largely because of the latter's global profile and Varoufakis's highly compelling abilities when it came to communicator.
“In reality, he was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges how his finance chief had his own agenda that involved promoting Varoufakis's publications and testing out his game theories using the nation instead of truly fighting for its financial survival.
Tsipras explained that those discussions to prevent insolvency were “not only a method of achieving improved terms for the country. They were a test, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country came dangerously close to exiting the single currency area.
On the line lay both the country's future and those severe austerity policies demanded in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, including a desperate plea to Russia to buy Greek bonds, were rejected.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were subjected to a public vote, an action which threw Europe into further existential crisis.
Although the vote was won decisively by voters who opposed austerity, the prime minister had little option but to reject its outcome and agree to a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the man who attracted media attention, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a parallel currency and distributing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also wrote that Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has provoked fury and stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
