In a freshly published personal account, called Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that chaotic period of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's version, Tsipras selected that maverick economist Varoufakis to be the treasury head primarily due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to communicator.
“He was, in reality, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims how Varoufakis possessed his own motives that involved advancing his publications as well as experimenting with his economic models on the nation instead of genuinely fighting for the country's economic stability.
Tsipras noted how the negotiations to stave off bankruptcy were “not only a way to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously close to leaving the eurozone.
On the line was both Greece's future but also those severe austerity policies required in return for bailout funds from international creditors.
Failed Options
Attempts to secure funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those excoriating conditions were put to a popular referendum, an action which threw Europe into further existential crisis.
Even though the vote was carried resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result then agree to a bailout package with creditors which proved to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was the end and asked him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
This account of events has provoked fury and shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
