In a newly released memoir, titled Ithaki, the ex- prime minister Tsipras does not hold back as he revisits the chaotic era of Greece's financial crisis.
An Unconventional Choice
In Tsipras's version, he selected the maverick academic Varoufakis to be his treasury head primarily due to his international reputation and his highly compelling skills when it came to communicator.
“He was, truthfully, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief had his own motives which involved promoting his publications and testing out his theories using the nation instead of genuinely fighting for its economic stability.
He wrote how the talks to prevent bankruptcy became “not just a way to secure improved terms for Greece. They became an experiment, a monumental chance to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid tense discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line was both the country's destiny and those harsh austerity measures required in return for financial aid from foreign lenders.
Unsuccessful Alternatives
Attempts to find financing from other sources, such as a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating conditions were subjected to a public vote, a move which plunged the EU into a further crisis of identity.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister was forced to ignore the result then agree to a rescue deal from foreign lenders which proved to be tougher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of publications globally … it seemed he relished the spotlight.”
After the minister outlined a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, Tsipras said he realised that it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, the author asserts how Varoufakis had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He further wrote that his confrontational approach made him increasingly isolated with colleagues, endangered the country, while helped hawks that were advocating Grexit.
The account of events has provoked fury and shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
