In a newly released personal account, named Ithaki, the former premier Tsipras spares no criticism as he revisits that turbulent period of Greece's debt drama.
An Unconventional Choice
In the ex-PM's version, he chose that unorthodox academic Varoufakis as the treasury head largely due to the latter's international reputation along with his highly compelling skills as a speaker.
“He was, in reality, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader alleges how his finance chief possessed his own agenda which included advancing his publications and testing out his own theories using Greece instead of genuinely advocating its economic stability.
He noted that the negotiations to stave off bankruptcy became “not only a method to secure improved terms for Greece. They became a test, a monumental chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece came perilously close to exiting the eurozone.
At stake was both Greece's future and the severe austerity policies required in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh conditions were subjected to a public vote, an action that threw the EU into deeper existential crisis.
Although the vote was carried decisively by those against the cuts, Tsipras was forced to reject its outcome then negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a contingency plan involving creating a parallel currency and issuing vouchers to pensioners, the leader said he realised it was game over and asked him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how his former ally demonstrated himself “unfit for a deal that required intricate and sensitive management.”
He also claimed that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, while assisted hardliners that were pushing for Grexit.
The account of history has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
