In a newly released autobiography, named Ithaki, the former leader Tsipras pulls no punches as he reflects on that turbulent era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's version, Tsipras chose that unorthodox economist Varoufakis to be his treasury head primarily because of the latter's worldwide fame along with Varoufakis's very persuasive abilities as a communicator.
“He was, actually, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed a personal motives that included advancing Varoufakis's publications as well as testing out his own economic models on the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote that those discussions to prevent insolvency were “not only a way of achieving a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the validity of his theories.”
High-Stakes Negotiations
During volatile discussions, Greece came dangerously close to exiting the single currency area.
At stake lay both Greece's future but also those punishing austerity policies demanded in exchange for financial aid from international creditors.
Failed Options
Attempts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting Greece was tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, a move which plunged the EU into deeper crisis of identity.
Even though the vote was won resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result and agree to a bailout package from foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency and distributing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, the author concludes that his former ally demonstrated himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also claimed how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hawks who were pushing for Grexit.
The account of events has been met with fury along with shock among certain groups, while Varoufakis has so far kept a conspicuous quiet on the matter.
