In a newly released personal account, called Ithaki, the ex- leader Tsipras pulls no punches as he revisits the turbulent era of Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis to be the treasury head primarily due to his international reputation and his “extremely attractive” abilities when it came to speaker.
“He was, in reality, more like a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests that Varoufakis had his own motives that included advancing his books as well as testing out his own economic models using the nation instead of truly fighting for its financial survival.
He wrote how those negotiations to stave off insolvency became “not only a way to secure improved terms for the country. They were a test, an historic chance to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously on the brink of leaving the eurozone.
At stake was not only Greece's future and the punishing austerity measures required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to secure funds elsewhere, such as a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, the excoriating conditions were subjected to a popular referendum, a move that threw the EU into further crisis of identity.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal from creditors that proved to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan involving creating a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
In the book, the author asserts that his former ally had proved himself “unsuitable for a deal that required complex and delicate management.”
Tsipras further claimed that his confrontational approach made him more and more alone with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
This account of history has been met with fury along with shock in some quarters, while Varoufakis has so far maintained a deafening silence regarding these claims.
