In a recently unveiled memoir, called Ithaki, the ex- premier Tsipras pulls no punches as he examines that chaotic era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, he selected that maverick academic Varoufakis to be his treasury head largely due to the latter's international reputation and his highly compelling skills as a communicator.
“In reality, he was, truthfully, more like a personality rather than an economist,” stated Tsipras.
Clashing Priorities
The former leader alleges how Varoufakis had his own motives which involved advancing Varoufakis's publications and experimenting with his own game theories on the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained how those negotiations to prevent bankruptcy were “not just a way of achieving a better deal for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, the country came perilously on the brink of leaving the eurozone.
At stake was not only the country's future but also those severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
That summer, the punitive bailout terms were put to a public vote, a move which plunged Europe into a further crisis of identity.
Although the vote was carried resoundingly by voters who opposed austerity, the prime minister had little option but to reject its outcome then negotiate a rescue deal from creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the figure who drew media attention, who graced the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author concludes how his former ally had proved himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further wrote how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were pushing for Grexit.
This retelling of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
