Within his freshly published personal account, titled Ithaki, the ex- leader Tsipras pulls no punches as he revisits that chaotic era during Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, he appointed the maverick academic Varoufakis to be his finance minister mainly due to the latter's international reputation and Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief possessed a personal motives which included advancing Varoufakis's books as well as testing out his own economic models on the nation rather than truly fighting for its economic stability.
Tsipras explained how those discussions to stave off insolvency were “not only a way to secure a better deal for the country. They were a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously on the brink of exiting the eurozone.
On the line was both Greece's future and those harsh cutbacks required in exchange for rescue loans from foreign lenders.
Failed Options
Attempts to find funds elsewhere, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating conditions were put to a public vote, an action that plunged the EU into deeper existential crisis.
Although the vote was carried decisively by voters who opposed the cuts, Tsipras was forced to reject its outcome then agree to a bailout package with foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who drew media attention, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the book, the author asserts that Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate management.”
He also claimed that Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hardliners who were pushing for Grexit.
This account of history has been met with anger and stunned disbelief among certain groups, while the former minister has kept a conspicuous quiet on the matter.
