Within his freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches as he revisits that turbulent period during Greece's debt drama.
A Controversial Choice
As per the ex-PM's version, he chose the unorthodox economist Varoufakis to be his treasury head mainly due to his international reputation along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, truthfully, more like a star rather than an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader claims how Varoufakis possessed his own motives that involved advancing Varoufakis's books as well as experimenting with his own economic models using Greece rather than truly fighting for its financial survival.
He wrote how the negotiations to stave off insolvency were “not just a way to secure a better deal for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
During tense negotiations, Greece found itself dangerously on the brink of leaving the single currency area.
At stake was not only the country's future and those severe austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, a move which plunged the EU into further crisis of identity.
Although the referendum was carried decisively by those against the cuts, the prime minister was forced to ignore the result and negotiate a bailout package from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan involving creating a secondary currency as well as distributing coupons to retirees, the leader knew it was game over and asked him: “Are you serious?”
Enduring Criticism
In the book, the author asserts how Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate management.”
Tsipras further wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hardliners who were pushing for Grexit.
The retelling of events has provoked fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence on the matter.
