In a newly released memoir, titled Ithaki, the ex- premier Tsipras spares no criticism as he examines that turbulent period of Greece's debt drama.
A Controversial Choice
In the ex-PM's version, he selected the maverick academic Varoufakis as his treasury head largely due to his worldwide fame along with Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, actually, more of a personality and less of an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges that his finance chief had a personal agenda that involved promoting his publications as well as testing out his own economic models on the nation instead of truly advocating its economic stability.
He wrote how those discussions to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They became an experiment, a monumental chance to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay both the country's destiny and the severe austerity policies required in return for rescue loans by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, a move which threw Europe into a further existential crisis.
Although the referendum was won decisively by voters against austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, the leader knew it was game over and asked Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras asserts that his former ally had proved himself to be “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote how his confrontational style left him increasingly isolated with colleagues, endangered the country, and assisted hawks that were pushing for a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
