In a freshly published personal account, titled Ithaki, the ex- leader Tsipras pulls no punches as he reflects on that chaotic period of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's recollections, he chose the unorthodox economist Varoufakis as the treasury head primarily due to his global profile along with Varoufakis's very persuasive abilities when it came to communicator.
“He was, truthfully, more like a star rather than an economist,” stated Tsipras.
Clashing Agendas
The former leader alleges how Varoufakis had a personal agenda which included advancing his publications and testing out his own economic models on Greece instead of truly advocating the country's financial survival.
Tsipras wrote that the negotiations to stave off bankruptcy became “not only a way of achieving a better deal for the country. They became a test, a monumental chance to prove the truth of his ideas.”
High-Stakes Negotiations
During tense discussions, the country came dangerously on the brink of exiting the eurozone.
At stake was both Greece's destiny but also the harsh austerity measures demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, a move that threw Europe into further existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras had little option but to reject its outcome then agree to a rescue deal from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan involving creating a parallel currency and issuing coupons to pensioners, the leader knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras further wrote that his aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
The account of events has been met with anger along with shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
