Within his freshly published autobiography, named Ithaki, the ex- premier Tsipras pulls no punches while he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's account, Tsipras selected that unorthodox economist Varoufakis to be his treasury head largely due to his international reputation and Varoufakis's highly compelling skills as a speaker.
“He was, truthfully, more like a celebrity rather than an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges how his finance chief had a personal motives which involved advancing Varoufakis's books as well as testing out his theories using the nation instead of truly advocating the country's financial survival.
Tsipras explained how those talks to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They became a test, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Talks
During volatile negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay both Greece's destiny and the punishing cutbacks demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that plunged the EU into further crisis of identity.
Although the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to reject its outcome and negotiate a bailout package from creditors which turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he relished his new role.”
After the minister outlined a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the book, the author concludes how his former ally had proved himself “unsuitable for a deal that required complex and delicate management.”
Tsipras further wrote that Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, and helped hardliners that were advocating Grexit.
The retelling of history has been met with anger along with shock in some quarters, whereas Varoufakis has so far kept a deafening silence regarding these claims.
