In a newly released memoir, called Ithaki, the former leader Tsipras does not hold back while he reflects on that chaotic period during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's version, he selected the unorthodox academic Varoufakis as the finance minister mainly due to the latter's international reputation along with Varoufakis's very persuasive skills as a communicator.
“In reality, he was, actually, more like a star rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how Varoufakis had a personal agenda which involved advancing his publications and testing out his game theories using the nation rather than truly advocating its financial survival.
He wrote how the discussions to stave off insolvency were “not just a way of achieving a better deal for the country. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During tense negotiations, the country came perilously close to exiting the eurozone.
On the line was both the country's future but also those harsh austerity policies demanded in return for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to find funds from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that threw the EU into a deeper existential crisis.
Even though the referendum was won decisively by those who opposed the cuts, the prime minister was forced but to reject its outcome and negotiate a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who drew publicity, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a secondary currency as well as issuing vouchers to pensioners, the leader knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, the author asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and delicate handling.”
He also wrote that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with shock among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
