Within his newly released personal account, called Ithaki, the former premier Tsipras pulls no punches as he reflects on the chaotic era of Greece's debt drama.
A Controversial Appointment
As per Tsipras's version, he appointed that maverick academic Varoufakis as the treasury head mainly because of the latter's worldwide fame along with his very persuasive skills as a public orator.
“He was, actually, more of a star rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
The former leader alleges how his finance chief possessed his own agenda which involved advancing Varoufakis's books and testing out his own economic models on Greece rather than truly advocating its financial survival.
Tsipras explained that the negotiations to avoid bankruptcy became “not just a way to secure a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line was not only Greece's destiny and those punishing austerity policies required in exchange for bailout funds from foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were subjected to a popular referendum, a move that threw Europe into a deeper existential crisis.
Although the vote was won resoundingly by those who opposed the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from creditors which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When the minister proposed a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, the leader knew it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts how Varoufakis demonstrated himself “unfit for a deal demanding complex and delicate handling.”
He further wrote that his confrontational style left him more and more alone among peers, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
