In a freshly published personal account, called Ithaki, the former prime minister Tsipras spares no criticism as he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
According to the ex-PM's version, Tsipras chose the maverick academic Varoufakis as his finance minister mainly due to the latter's worldwide fame along with his very persuasive skills as a communicator.
“He was, truthfully, more like a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
The former leader claims how his finance chief possessed his own agenda that included advancing his publications and testing out his own economic models on Greece instead of genuinely fighting for its economic stability.
He wrote that the discussions to prevent insolvency became “not only a method of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously on the brink of leaving the single currency area.
On the line lay not only Greece's destiny and the severe austerity policies demanded in exchange for financial aid from international creditors.
Failed Options
Attempts to secure financing from other sources, including a desperate plea to Russia to buy Greek bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the excoriating conditions were put to a public vote, a move that threw the EU into a deeper existential crisis.
Even though the vote was won resoundingly by those against austerity, Tsipras had little option to reject its outcome and agree to a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who drew publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving establishing a parallel currency and issuing vouchers to pensioners, the leader said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also wrote how his aggressive approach left him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating Grexit.
This account of events has provoked fury and shock in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
