In a freshly published autobiography, titled Ithaki, the ex- premier Tsipras does not hold back as he revisits that chaotic period of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, he selected the unorthodox academic Varoufakis to be his treasury head primarily because of his worldwide fame and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims how his finance chief had his own motives that involved promoting his books as well as experimenting with his theories using the nation rather than genuinely advocating its financial survival.
Tsipras explained how the negotiations to avoid bankruptcy became “not just a way to secure improved terms for the country. They were an experiment, a monumental chance to prove the validity of his economic theories.”
Critical Talks
During rollercoaster discussions, the country found itself dangerously on the brink of leaving the single currency area.
At stake was both the country's future but also those harsh austerity measures demanded in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, including a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a public vote, a move which plunged the EU into a deeper existential crisis.
Although the vote was won decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome and agree to a rescue deal from creditors that turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan involving creating a secondary currency and issuing vouchers to retirees, the leader said he realised it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras further claimed that his confrontational approach left him more and more alone with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
