Within his freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches as he revisits that chaotic period of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, he appointed the unorthodox economist Varoufakis to be his treasury head largely due to his global profile and his very persuasive abilities when it came to public orator.
“He was, truthfully, more like a personality and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief had a personal agenda that involved promoting his publications and experimenting with his game theories using Greece rather than genuinely fighting for the country's financial survival.
He wrote that the talks to prevent insolvency became “not only a way to secure improved terms for the country. They became an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
During rollercoaster negotiations, Greece came perilously close to exiting the single currency area.
At stake lay not only the country's future but also those harsh cutbacks required in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were subjected to a public vote, a move that plunged Europe into a deeper crisis of identity.
Although the vote was won resoundingly by those against austerity, Tsipras was forced to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of magazines globally … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency and distributing vouchers to retirees, the leader said he realised it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how his aggressive approach left him more and more alone with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
The account of events has been met with fury and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
