In a newly released personal account, called Ithaki, the ex- prime minister Tsipras spares no criticism while he examines that turbulent period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, he selected the unorthodox academic Varoufakis as his finance minister largely because of the latter's global profile along with his highly compelling abilities as a public orator.
“He was, in reality, more like a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader alleges that his finance chief possessed his own motives that involved advancing his publications and experimenting with his own game theories using the nation instead of truly advocating its economic stability.
He explained that the negotiations to stave off insolvency were “not just a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake lay both Greece's future and those severe cutbacks required in exchange for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, a move that threw the EU into further existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option to reject its outcome and agree to a rescue deal from creditors which turned out to be more severe.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the covers of publications globally … it seemed he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, the leader knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, the author concludes that his former ally had proved himself “unfit for a deal that required complex and delicate handling.”
Tsipras further wrote how Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
