In a freshly published personal account, titled Ithaki, the ex- prime minister Tsipras spares no criticism as he revisits the chaotic period of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he chose the maverick economist Varoufakis to be his finance minister largely due to his worldwide fame along with Varoufakis's highly compelling skills when it came to public orator.
“He was, actually, more like a personality and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis had his own agenda which included promoting Varoufakis's publications and experimenting with his economic models on the nation instead of truly advocating the country's financial survival.
He explained how those negotiations to stave off bankruptcy were “not only a way of achieving improved terms for the country. They were a test, an historic chance to prove the truth of his economic theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line was both the country's future and the severe cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a public vote, an action that plunged the EU into deeper crisis of identity.
Although the vote was won decisively by those against austerity, the prime minister had little option to ignore the result then agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras knew it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally demonstrated himself to be “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras further wrote how his confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger along with shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
