In a newly released autobiography, called Ithaki, the former prime minister Tsipras does not hold back as he examines that turbulent era during Greece's financial crisis.
A Controversial Choice
In Tsipras's version, Tsipras appointed that unorthodox economist Varoufakis as the finance minister primarily due to his international reputation and Varoufakis's “extremely attractive” abilities when it came to public orator.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief had his own agenda that involved promoting Varoufakis's books as well as experimenting with his own theories using Greece rather than truly advocating the country's financial survival.
He wrote how the talks to stave off bankruptcy became “not just a method to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country came dangerously close to leaving the eurozone.
At stake was both the country's future and the harsh austerity policies required in exchange for rescue loans from foreign lenders.
Failed Options
Attempts to secure financing elsewhere, including a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive conditions were subjected to a public vote, an action that threw the EU into deeper existential crisis.
Although the referendum was won decisively by those who opposed austerity, Tsipras had little option to reject its outcome then negotiate a bailout package with creditors which turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew media attention, who appeared on the covers of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as distributing coupons to retirees, the leader knew that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts that his former ally had proved himself “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras further wrote how his aggressive approach left him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for Grexit.
This retelling of events has provoked fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence on the matter.
