In a freshly published personal account, titled Ithaki, the former premier Tsipras pulls no punches while he examines that turbulent era of Greece's economic turmoil.
A Controversial Choice
In the ex-PM's version, he chose the unorthodox academic Varoufakis as his finance minister primarily because of his global profile and Varoufakis's very persuasive skills as a communicator.
“He was, truthfully, more of a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief possessed his own motives which included advancing his publications as well as experimenting with his economic models using Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote that those negotiations to prevent bankruptcy became “not just a way to secure a better deal for Greece. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During tense negotiations, Greece found itself dangerously close to leaving the eurozone.
On the line lay not only the country's destiny but also the harsh austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the excoriating conditions were subjected to a public vote, an action which plunged Europe into a further existential crisis.
Although the vote was carried resoundingly by voters against the cuts, Tsipras was forced but to ignore the result then negotiate a bailout package with creditors which proved to be more severe.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
When the minister outlined a contingency plan that included creating a parallel currency as well as distributing coupons to retirees, Tsipras knew that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras further wrote how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while assisted hardliners who were pushing for Grexit.
This retelling of events has provoked anger and stunned disbelief among certain groups, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
