In a newly released personal account, called Ithaki, the former premier Tsipras spares no criticism while he reflects on that chaotic period of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's account, he chose the maverick economist Varoufakis to be the treasury head largely because of the latter's global profile and his highly compelling abilities as a speaker.
“He was, truthfully, more like a celebrity rather than an economist,” stated Tsipras.
Clashing Priorities
The former leader claims how his finance chief had his own motives which involved advancing his books as well as experimenting with his economic models using Greece instead of genuinely advocating its financial survival.
He explained that those discussions to prevent bankruptcy were “not only a method to secure improved terms for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, the country came perilously on the brink of exiting the eurozone.
At stake lay both Greece's future but also the severe austerity policies demanded in return for bailout funds from international creditors.
Failed Options
Efforts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Public Vote and Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that plunged the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by voters who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package from creditors which turned out to be more severe.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
After the minister proposed a contingency plan involving creating a parallel currency as well as issuing coupons to retirees, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Lasting Criticism
Within the book, the author concludes how his former ally had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
