In a newly released personal account, titled Ithaki, the former premier Tsipras pulls no punches while he reflects on the chaotic period during Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's account, Tsipras selected the unorthodox economist Varoufakis as the treasury head largely due to the latter's global profile along with Varoufakis's very persuasive skills as a communicator.
“He was, actually, more like a star and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras claims how Varoufakis possessed a personal motives which involved promoting Varoufakis's books as well as testing out his economic models on the nation rather than genuinely advocating its financial survival.
He wrote that those talks to avoid bankruptcy became “not just a way of achieving a better deal for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
At stake was both Greece's future but also those severe austerity measures required in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those harsh conditions were subjected to a popular referendum, a move which threw the EU into further existential crisis.
Even though the vote was won resoundingly by voters who opposed austerity, Tsipras had little option to reject its outcome and agree to a bailout package from foreign lenders which proved to be more severe.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying 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 that it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, the author asserts that Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate handling.”
Tsipras also claimed how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of history has provoked anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
