In a newly released personal account, named Ithaki, the former premier Tsipras does not hold back as he revisits the chaotic period of Greece's debt drama.
An Unconventional Choice
According to Tsipras's recollections, he appointed that maverick academic Varoufakis as the treasury head largely because of his global profile and his very persuasive skills when it came to public orator.
“He was, truthfully, more like a celebrity rather than an economist,” stated the 51-year-old.
Clashing Agendas
Tsipras suggests how his finance chief possessed his own motives which included advancing his publications and experimenting with his own economic models on Greece instead of genuinely advocating its economic stability.
Tsipras wrote how the talks to prevent insolvency became “not just a way of achieving a better deal for the country. They were a test, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Talks
During tense negotiations, Greece came perilously close to leaving the eurozone.
On the line was not only the country's future and the severe austerity measures required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a public vote, a move which threw the EU into a deeper crisis of identity.
Although the vote was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras further wrote that his aggressive approach made him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This account of history has provoked fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence on the matter.
