In a newly released personal account, named Ithaki, the ex- leader Tsipras pulls no punches as he revisits that chaotic period during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, Tsipras chose that unorthodox academic Varoufakis as the treasury head mainly due to his international reputation and his highly compelling abilities as a communicator.
“He was, actually, more like a personality and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that his finance chief possessed his own agenda that included advancing Varoufakis's books as well as testing out his theories using the nation rather than genuinely advocating the country's economic stability.
Tsipras wrote that those negotiations to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
Amid tense negotiations, Greece found itself perilously on the brink of exiting the eurozone.
On the line was both Greece's future but also those severe austerity measures demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and agree to a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for a deal that required intricate and delicate handling.”
He also claimed that his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
