Within his newly released personal account, titled Ithaki, the former leader Tsipras does not hold back as he reflects on that chaotic period during Greece's debt drama.
A Controversial Choice
In Tsipras's recollections, he chose the maverick economist Varoufakis to be the treasury head mainly because of his international reputation along with his “extremely attractive” abilities as a speaker.
“He was, actually, more like a personality rather than an economic expert,” wrote Tsipras.
Clashing Agendas
The former leader alleges that his finance chief had his own motives that involved promoting Varoufakis's publications and testing out his own game theories using Greece rather than truly fighting for its financial survival.
He explained that the talks to stave off bankruptcy were “not only a method to secure improved terms for the country. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile negotiations, the country found itself perilously on the brink of leaving the single currency area.
On the line lay both the country's future and the punishing austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those excoriating bailout terms were put to a public vote, an action which threw the EU into a further existential crisis.
Even though the vote was carried decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be more severe.
Final Straw
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the man who drew media attention, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras further claimed that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked fury and shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
