Within his newly released personal account, titled Ithaki, the ex- leader Tsipras pulls no punches as he examines that turbulent era of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, he chose that unorthodox economist Varoufakis as the finance minister largely because of the latter's global profile and his highly compelling skills as a speaker.
“In reality, he was, actually, more of a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had his own agenda which involved advancing Varoufakis's books as well as testing out his economic models on Greece instead of truly advocating its financial survival.
Tsipras explained how the discussions to prevent insolvency were “not just a way of achieving improved terms for the country. They were a test, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid rollercoaster discussions, the country found itself dangerously on the brink of leaving the single currency area.
At stake lay not only the country's destiny but also those punishing austerity measures required in return for bailout funds from international creditors.
Failed Alternatives
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, an action which plunged Europe into further crisis of identity.
Even though the referendum was carried resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome then negotiate a bailout package with foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who drew publicity, who graced the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as distributing coupons to pensioners, the leader said he realised that it was game over questioning him: “Is this for real?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
He also wrote how his confrontational approach left him increasingly isolated with colleagues, endangered the country, and assisted hawks who were advocating Grexit.
This account of events has been met with fury and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
