In a newly released personal account, named Ithaki, the ex- leader Tsipras pulls no punches while he revisits the turbulent era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's account, he appointed the maverick economist Varoufakis to be the treasury head primarily due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, in reality, more like a personality and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda that involved promoting Varoufakis's books and experimenting with his own economic models on the nation rather than genuinely fighting for its financial survival.
Tsipras explained how those discussions to prevent insolvency were “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid tense discussions, the country came dangerously close to leaving the single currency area.
At stake was not only Greece's future and those harsh austerity measures required in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece would be equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were subjected to a public vote, a move that plunged Europe into further crisis of identity.
Even though the referendum was won resoundingly by those who opposed austerity, Tsipras was forced to reject its outcome and agree to a rescue deal from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew media attention, who graced the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency as well as distributing coupons to pensioners, the leader said he realised that it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself to be “unfit for a deal that required complex and delicate management.”
He further wrote how his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks that were advocating Grexit.
This retelling of events has been met with anger and shock among certain groups, whereas Varoufakis has kept a deafening silence regarding these claims.
