In a recently unveiled personal account, called Ithaki, the former leader Tsipras pulls no punches while he revisits that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's version, Tsipras selected the maverick economist Varoufakis as the treasury head mainly because of the latter's international reputation along with his very persuasive skills when it came to communicator.
“In reality, he was, in reality, more like a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief possessed a personal agenda that included promoting Varoufakis's publications as well as experimenting with his own game theories using Greece rather than genuinely fighting for its financial survival.
He wrote that those negotiations to stave off insolvency were “not only a way to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of exiting the eurozone.
On the line was not only Greece's destiny but also the harsh cutbacks required in return for bailout funds by international creditors.
Failed Options
Attempts to find financing from other sources, such as a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was carried decisively by those who opposed the cuts, Tsipras was forced but to ignore the result then agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who attracted publicity, who appeared on the covers of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving establishing a parallel currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras asserts how Varoufakis had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
