In a newly released personal account, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he revisits that chaotic era of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected the maverick economist Varoufakis as his finance minister primarily because of his international reputation along with his very persuasive abilities as a speaker.
“He was, in reality, more like a star rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own agenda that involved advancing Varoufakis's books and experimenting with his economic models on Greece instead of genuinely fighting for the country's economic stability.
He wrote how those negotiations to avoid insolvency became “not just a way to secure a better deal for the country. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Talks
During volatile negotiations, the country came perilously on the brink of leaving the single currency area.
At stake lay both the country's future but also the punishing cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that plunged Europe into deeper crisis of identity.
Although the vote was won resoundingly by voters who opposed the cuts, the prime minister was forced to ignore the result then negotiate a bailout package from creditors which proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan involving creating a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive management.”
He further wrote how his aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has provoked anger and shock among certain groups, whereas the former minister has so far kept a deafening silence regarding these claims.
