Within his freshly published personal account, titled Ithaki, the ex- leader Tsipras pulls no punches while he examines the turbulent era of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's recollections, Tsipras chose the unorthodox economist Varoufakis to be the treasury head primarily due to his global profile and his “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more of a personality and less of an economist,” stated Tsipras.
Clashing Agendas
The former leader claims how his finance chief possessed his own motives which involved advancing Varoufakis's books as well as experimenting with his theories using Greece rather than genuinely advocating its financial survival.
He noted how the talks to stave off insolvency were “not just a way of achieving improved terms for Greece. They became an experiment, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Talks
During rollercoaster discussions, Greece came perilously close to exiting the single currency area.
At stake lay not only the country's destiny but also the harsh austerity policies demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, an action which plunged Europe into a further existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome then agree to a rescue deal with creditors which turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the man who drew media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as issuing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author concludes that his former ally had proved himself to be “unfit for a deal that required intricate and sensitive management.”
He also wrote how Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hardliners who were pushing for Grexit.
The account of events has been met with fury along with shock in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
