In a recently unveiled personal account, titled Ithaki, the former leader Tsipras does not hold back while he revisits the chaotic period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's recollections, he appointed that unorthodox academic Varoufakis as his treasury head primarily due to the latter's international reputation and his “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more like a star and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis had his own agenda which included promoting his books and experimenting with his economic models on the nation instead of truly advocating its financial survival.
Tsipras wrote that the talks to avoid insolvency were “not just a method of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his economic theories.”
Critical Negotiations
During tense negotiations, the country found itself dangerously close to leaving the single currency area.
On the line lay both Greece's destiny and those severe austerity policies required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a public vote, a move that threw the EU into deeper crisis of identity.
Even though the referendum was won decisively by those against the cuts, Tsipras had little option but to ignore the result then agree to a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to pensioners, the leader knew it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
This account of events has provoked fury and shock among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
