Within his newly released memoir, titled Ithaki, the former leader Tsipras does not hold back as he revisits that turbulent era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, Tsipras appointed that unorthodox academic Varoufakis as his finance minister mainly due to his global profile along with his highly compelling skills as a communicator.
“He was, truthfully, more like a celebrity and less of an economist,” wrote Tsipras.
Clashing Agendas
The former leader alleges that his finance chief had a personal agenda that included advancing his books as well as testing out his economic models on Greece instead of genuinely advocating its economic stability.
He wrote that those talks to stave off bankruptcy were “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
During volatile discussions, the country found itself dangerously close to exiting the eurozone.
At stake lay not only Greece's future but also those severe cutbacks demanded in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move which threw Europe into further existential crisis.
Although the referendum was won decisively by those against austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving creating a parallel currency and distributing vouchers to retirees, the leader knew it was the end and asked him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
He also wrote that his confrontational style left him more and more alone among peers, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of history has provoked fury and shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
