In a freshly published personal account, called Ithaki, the former premier Tsipras does not hold back while he examines the turbulent period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, Tsipras chose the maverick academic Varoufakis to be his treasury head largely due to his global profile along with his highly compelling skills when it came to public orator.
“In reality, he was, actually, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own agenda which included advancing his books as well as testing out his game theories on Greece rather than genuinely advocating its economic stability.
Tsipras noted how those negotiations to avoid insolvency were “not just a way to secure a better deal for Greece. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile negotiations, the country came dangerously close to exiting the single currency area.
At stake was not only the country's future but also those severe cutbacks demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to find financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those punitive conditions were put to a public vote, a move that plunged the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister was forced but to reject its outcome then agree to a bailout package with creditors which proved to be more severe.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, the author concludes how his former ally demonstrated himself “unsuitable for an agreement that required intricate and sensitive handling.”
He further wrote how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
