Within his recently unveiled memoir, named Ithaki, the former leader Tsipras does not hold back as he revisits that chaotic period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's recollections, he selected the unorthodox economist Varoufakis to be his treasury head primarily due to his global profile and his “extremely attractive” abilities as a communicator.
“He was, truthfully, more of a star rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests that Varoufakis possessed a personal agenda that involved advancing his books and testing out his game theories using the nation rather than truly fighting for its financial survival.
Tsipras wrote that those talks to prevent bankruptcy became “not just a way of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country came perilously on the brink of leaving the eurozone.
At stake was not only the country's destiny and the severe cutbacks demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move which threw Europe into a deeper existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras had little option to ignore the result and negotiate a bailout package with foreign lenders which turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan that included creating a secondary currency and issuing vouchers to pensioners, Tsipras knew it was the end questioning him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's aggressive style left him more and more alone with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
The account of history has been met with anger along with shock among certain groups, whereas the former minister has maintained a deafening silence on the matter.
