In a freshly published memoir, named Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Choice
According to Tsipras's version, he appointed that maverick academic Varoufakis as his finance minister primarily because of the latter's worldwide fame along with his very persuasive skills when it came to public orator.
“He was, in reality, more of a star rather than an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief possessed his own motives which included advancing his publications as well as experimenting with his own theories using Greece rather than truly fighting for its economic stability.
He wrote how those discussions to prevent insolvency became “not only a way to secure improved terms for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile discussions, the country found itself perilously on the brink of leaving the single currency area.
At stake lay both Greece's destiny but also those harsh cutbacks demanded in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including a desperate plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, an action that plunged Europe into further crisis of identity.
Even though the referendum was won decisively by voters against austerity, the prime minister was forced but to reject its outcome and negotiate a bailout package with foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, the author concludes how Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive handling.”
Tsipras further claimed how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for Grexit.
This retelling of events has provoked fury and shock in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
