In a freshly published memoir, named Ithaki, the former leader Tsipras pulls no punches as he revisits that chaotic period of Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he selected that maverick economist Varoufakis to be his treasury head largely due to the latter's international reputation along with Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” wrote the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief had a personal agenda that included advancing his books and testing out his own theories on the nation rather than genuinely fighting for its financial survival.
He noted that those discussions to avoid bankruptcy became “not only a way of achieving improved terms for Greece. They were a test, an historic opportunity to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
At stake lay not only Greece's future and those severe cutbacks demanded in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those punitive bailout terms were put to a public vote, an action which plunged the EU into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed austerity, the prime minister was forced to ignore the result then agree to a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the man who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, the leader said he realised it was the end questioning him: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras asserts how his former ally had proved himself to be “unfit for an agreement that required complex and sensitive management.”
Tsipras also claimed that Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for Grexit.
This account of events has been met with fury along with shock among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.
