In a freshly published autobiography, called Ithaki, the ex- leader Tsipras pulls no punches while he revisits that turbulent period during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's version, he selected the maverick academic Varoufakis to be the treasury head mainly due to the latter's worldwide fame and Varoufakis's very persuasive abilities when it came to communicator.
“He was, actually, more of a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief possessed his own agenda that included promoting his publications and experimenting with his own economic models on Greece instead of truly advocating its economic stability.
Tsipras noted how those talks to stave off bankruptcy became “not just a way to secure improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
During rollercoaster negotiations, Greece came dangerously close to leaving the single currency area.
On the line was both Greece's destiny and those punishing austerity measures demanded in return for bailout funds by international creditors.
Failed Options
Attempts to find funds elsewhere, including an urgent appeal to Russia to buy Greek bonds, were rejected.
Assisting Greece was tantamount to tossing cash into the garbage, Putin is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were put to a popular referendum, a move which threw the EU into a further existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, the prime minister had little option to ignore the result then negotiate a bailout package with foreign lenders that proved to be more severe.
Final Straw
The ex-PM revealed that he began to doubt his finance minister quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When the minister outlined a contingency plan that included creating a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts that his former ally had proved himself “unfit for an agreement that required complex and delicate management.”
Tsipras further claimed how Varoufakis's confrontational style left him more and more alone among peers, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
The retelling of events has provoked anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.
