In a newly released memoir, called Ithaki, the ex- prime minister Tsipras pulls no punches while he revisits the turbulent period of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he chose the unorthodox economist Varoufakis as the treasury head largely due to the latter's international reputation along with Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Clashing Agendas
The former leader claims how his finance chief had his own motives which involved advancing Varoufakis's publications and experimenting with his theories using Greece instead of genuinely fighting for its economic stability.
Tsipras noted that the discussions to avoid bankruptcy were “not just a method to secure improved terms for the country. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, the country found itself perilously close to leaving the eurozone.
At stake lay both Greece's future and the punishing austerity measures demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to find financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those excoriating conditions were subjected to a public vote, an action which plunged Europe into deeper crisis of identity.
Although the referendum was won decisively by voters against the cuts, the prime minister was forced but to reject its outcome then negotiate a bailout package from creditors that turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unfit for an agreement demanding complex and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hardliners who were pushing for Grexit.
The retelling of history has been met with anger and shock among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
