Within his recently unveiled personal account, named Ithaki, the former leader Tsipras pulls no punches as he revisits that turbulent era of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's version, Tsipras selected the maverick academic Varoufakis as his treasury head largely due to his international reputation and Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, actually, more of a personality and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims how his finance chief possessed a personal agenda that involved advancing his books and testing out his economic models using Greece rather than truly fighting for its financial survival.
He explained that those negotiations to avoid insolvency were “not just a method of achieving a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During volatile negotiations, the country came perilously close to exiting the single currency area.
At stake was not only Greece's future and the harsh austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Helping the indebted country would be equivalent to throwing money into the garbage, Putin reportedly told Tsipras during their meeting.
Public Vote and Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, a move which plunged Europe into a deeper crisis of identity.
Although the referendum was won decisively by voters against the cuts, the prime minister was forced to ignore the result then negotiate a bailout package from creditors which turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing coupons to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes how his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
He also claimed that Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
The account of events has provoked anger along with shock among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
