Within his freshly published personal account, named Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's account, he appointed that unorthodox economist Varoufakis to be his treasury head largely due to his worldwide fame and his very persuasive abilities when it came to public orator.
“He was, actually, more of a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges how his finance chief possessed a personal motives which included promoting Varoufakis's books and experimenting with his economic models using Greece rather than truly fighting for the country's economic stability.
He wrote how those negotiations to avoid bankruptcy became “not only a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
During volatile negotiations, Greece came perilously close to exiting the eurozone.
At stake lay both Greece's destiny but also the harsh austerity measures demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to secure funds from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the harsh conditions were put to a public vote, a move which threw Europe into deeper existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome and negotiate a bailout package with creditors that turned out to be more severe.
Final Straw
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who graced the covers of magazines globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive handling.”
He further wrote that his confrontational style made him more and more alone with colleagues, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
This retelling of history has provoked anger along with shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
