In a recently unveiled personal account, titled Ithaki, the ex- premier Tsipras pulls no punches as he reflects on the turbulent period of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's version, he selected the unorthodox economist Yanis Varoufakis as the treasury head largely because of his international reputation along with Varoufakis's highly compelling abilities as a speaker.
“He was, in reality, more like a personality and less of an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis had his own motives which involved promoting his books and testing out his economic models using Greece instead of genuinely advocating the country's financial survival.
Tsipras wrote how those negotiations to prevent insolvency were “not just a method of achieving improved terms for Greece. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously close to leaving the eurozone.
On the line was not only Greece's destiny but also the severe cutbacks demanded in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to secure funds elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action that threw Europe into deeper crisis of identity.
Even though the referendum was carried decisively by voters against the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who graced the front pages of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, the leader said he realised that it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
Tsipras further claimed how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
The retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
