In a freshly published personal account, called Ithaki, the ex- premier Tsipras does not hold back as he reflects on that chaotic period of Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, he appointed that maverick academic Varoufakis as his treasury head primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more of a star and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader claims that his finance chief possessed his own agenda that included promoting his books as well as testing out his game theories on the nation instead of truly advocating the country's financial survival.
Tsipras explained that those talks to stave off insolvency were “not just a way to secure improved terms for Greece. They were a test, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake lay not only the country's destiny and those severe austerity policies demanded in exchange for financial aid by international creditors.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, an action that threw Europe into a further existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result then agree to a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate management.”
Tsipras also claimed how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with shock in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
