In a newly released personal account, called Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected the maverick economist Varoufakis to be the treasury head mainly because of the latter's international reputation and his highly compelling skills when it came to speaker.
“He was, in reality, more like a personality and less of an economist,” wrote the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis possessed a personal motives that included advancing his publications and experimenting with his own economic models using Greece instead of genuinely fighting for its financial survival.
He wrote that the talks to prevent bankruptcy became “not only a way to secure a better deal for Greece. They were an experiment, a monumental chance to prove the truth of his ideas.”
Critical Negotiations
During tense discussions, Greece found itself dangerously on the brink of leaving the eurozone.
At stake was both Greece's destiny but also the harsh cutbacks demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action which threw the EU into deeper crisis of identity.
Although the referendum was won resoundingly by voters against austerity, Tsipras was forced to reject its outcome and negotiate a bailout package with creditors that proved to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, the leader knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, the author asserts how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He further claimed that his confrontational approach made him more and more alone with colleagues, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
This retelling of history has provoked fury and stunned disbelief among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
