Within his freshly published memoir, named Ithaki, the former premier Tsipras pulls no punches as he examines that chaotic period of Greece's debt drama.
A Controversial Appointment
In the ex-PM's version, Tsipras chose that maverick academic Varoufakis as the treasury head primarily because of his worldwide fame and Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more like a celebrity rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal motives which involved advancing his publications and experimenting with his theories on the nation instead of genuinely advocating its financial survival.
He noted that those discussions to avoid insolvency became “not just a way of achieving a better deal for the country. They became a test, a monumental chance to prove the validity of his ideas.”
High-Stakes Talks
During volatile negotiations, Greece came perilously close to leaving the single currency area.
On the line was both the country's destiny and those harsh cutbacks demanded in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as a desperate appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those excoriating conditions were put to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome and negotiate a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to retirees, the leader knew that it was the end and asked him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts that his former ally had proved himself “unsuitable for a deal demanding complex and delicate management.”
Tsipras further wrote how Varoufakis's aggressive style made him more and more alone with colleagues, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
The account of history has provoked anger along with stunned disbelief among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
