In a newly released personal account, called Ithaki, the former leader Tsipras pulls no punches while he reflects on that turbulent period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, he selected that unorthodox academic Varoufakis as the treasury head largely because of the latter's worldwide fame along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more like a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges how his finance chief possessed his own motives that included advancing his publications and testing out his game theories using the nation instead of genuinely advocating its economic stability.
He noted that the discussions to stave off insolvency became “not only a method of achieving improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake was not only the country's destiny and the harsh austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were put to a public vote, an action that threw the EU into a deeper crisis of identity.
Although the referendum was won decisively by voters who opposed the cuts, Tsipras had little option to reject its outcome and negotiate a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He also wrote that his aggressive style made him increasingly isolated among peers, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of events has been met with fury along with stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
