Within his newly released autobiography, titled Ithaki, the former prime minister Tsipras does not hold back as he reflects on that turbulent period during Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, he chose that unorthodox academic Varoufakis to be his treasury head mainly due to the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a star and less of an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims how his finance chief had a personal agenda which included promoting Varoufakis's books as well as experimenting with his own theories on Greece rather than truly advocating its financial survival.
He wrote how those negotiations to avoid bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself dangerously close to leaving the eurozone.
On the line was not only the country's future and the severe cutbacks demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were put to a public vote, an action which threw the EU into deeper existential crisis.
Although the vote was won resoundingly by voters against the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving creating a parallel currency as well as distributing coupons to retirees, Tsipras knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras asserts how his former ally had proved himself to be “unfit for an agreement demanding intricate and sensitive management.”
He also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
