In a recently unveiled memoir, titled Ithaki, the former leader Tsipras pulls no punches as he reflects on the chaotic era during Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's recollections, he appointed that unorthodox academic Varoufakis as his treasury head largely due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“In reality, he was, actually, more like a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader claims how his finance chief possessed his own agenda that included promoting Varoufakis's publications and testing out his own theories using Greece instead of genuinely advocating the country's financial survival.
He noted how those talks to stave off bankruptcy became “not just a way of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came dangerously on the brink of leaving the eurozone.
At stake was not only Greece's future and the severe austerity measures demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the punitive conditions were put to a public vote, an action that threw Europe into a deeper crisis of identity.
Even though the referendum was won decisively by voters against the cuts, Tsipras was forced but to reject its outcome then negotiate a bailout package from creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras knew it was game over questioning him: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and delicate handling.”
He also claimed that his confrontational style left him more and more alone among peers, endangered the country, while assisted hawks who were pushing for Grexit.
The retelling of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
