Within his newly released personal account, called Ithaki, the former prime minister Tsipras pulls no punches while he reflects on that turbulent era of Greece's debt drama.
A Controversial Choice
According to the ex-PM's recollections, Tsipras selected that maverick academic Varoufakis as the finance minister primarily because of his global profile along with Varoufakis's very persuasive skills as a communicator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader claims that his finance chief had a personal agenda which included promoting his books as well as testing out his own game theories using the nation rather than truly fighting for the country's financial survival.
He noted how the discussions to avoid insolvency became “not just a method to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster discussions, the country came dangerously on the brink of leaving the single currency area.
On the line lay both Greece's destiny but also the punishing austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the punitive conditions were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed austerity, the prime minister was forced to ignore the result and agree to a bailout package from creditors that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement demanding complex and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hawks that were pushing for Grexit.
The retelling of history has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
