In a recently unveiled personal account, titled Ithaki, the ex- prime minister Tsipras spares no criticism as he revisits that turbulent period of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's version, he selected the unorthodox academic Varoufakis as the treasury head largely due to his global profile along with his very persuasive skills when it came to speaker.
“In reality, he was, actually, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own motives which included promoting his books as well as testing out his theories on Greece rather than genuinely advocating the country's economic stability.
He noted how those negotiations to avoid insolvency were “not just a method of achieving a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
Critical Talks
During rollercoaster negotiations, Greece came perilously on the brink of exiting the single currency area.
On the line lay both the country's future and the harsh cutbacks required in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the excoriating bailout terms were subjected to a popular referendum, an action which threw the EU into a deeper crisis of identity.
Even though the vote was won decisively by those against austerity, Tsipras had little option but to ignore the result and agree to a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, the author asserts that his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive management.”
Tsipras also claimed that his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
