In a newly released memoir, named Ithaki, the former premier Tsipras pulls no punches as he examines that turbulent period of Greece's debt drama.
An Unconventional Choice
According to Tsipras's recollections, Tsipras selected that maverick academic Varoufakis to be the treasury head largely due to his international reputation along with Varoufakis's very persuasive abilities as a speaker.
“He was, in reality, more like a personality rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader alleges how Varoufakis had a personal agenda that included promoting his publications and testing out his own economic models using Greece rather than truly fighting for the country's financial survival.
He explained that the negotiations to avoid bankruptcy were “not only a way to secure improved terms for Greece. They became an experiment, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile discussions, the country came dangerously on the brink of exiting the eurozone.
On the line was not only the country's destiny and the punishing austerity policies required in return for rescue loans from international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, a move which plunged Europe into a further crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced to ignore the result and agree to a rescue deal from creditors which turned out to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to pensioners, Tsipras said he realised it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the book, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal that required complex and sensitive handling.”
He also claimed that his aggressive style left him more and more alone among peers, put Greece at risk, while helped hardliners who were pushing for Grexit.
This account of events has provoked anger along with stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
