In a recently unveiled personal account, called Ithaki, the ex- leader Tsipras spares no criticism as he revisits that chaotic era during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, Tsipras appointed that unorthodox economist Varoufakis to be his treasury head largely because of his worldwide fame and his “extremely attractive” abilities as a public orator.
“He was, truthfully, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests how Varoufakis had his own motives which included promoting Varoufakis's books as well as experimenting with his own game theories on the nation rather than genuinely fighting for its financial survival.
Tsipras noted how those negotiations to avoid insolvency became “not just a method of achieving a better deal for Greece. They were an experiment, an historic chance to prove the truth of his economic theories.”
Critical Talks
During tense negotiations, Greece found itself dangerously close to leaving the eurozone.
On the line was not only Greece's destiny but also the severe cutbacks demanded in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive bailout terms were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Although the referendum was won decisively by those against austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of magazines globally … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author concludes that his former ally had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He further claimed how Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
The retelling of history has been met with fury along with shock in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
