Within his newly released autobiography, called Ithaki, the former leader Tsipras pulls no punches while he revisits that chaotic era during Greece's debt drama.
A Controversial Appointment
As per Tsipras's recollections, Tsipras chose the unorthodox academic Varoufakis to be his treasury head mainly because of his global profile along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how his finance chief had a personal motives which involved advancing his books as well as experimenting with his own theories on Greece rather than genuinely fighting for the country's financial survival.
Tsipras noted that those talks to avoid bankruptcy were “not just a method of achieving improved terms for the country. They were a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
On the line lay both the country's future and those punishing austerity policies required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were put to a public vote, an action which plunged the EU into deeper existential crisis.
Although the vote was won decisively by voters against the cuts, Tsipras was forced but to ignore the result then agree to a bailout package from foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
After the minister outlined a contingency plan involving creating a parallel currency and distributing coupons to retirees, Tsipras knew it was game over and asked him: “Are you serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive management.”
He also wrote how his aggressive style made him more and more alone with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has provoked anger and shock in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
