Within his recently unveiled memoir, named Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, he selected the unorthodox academic Varoufakis to be the treasury head largely due to the latter's international reputation along with his highly compelling skills as a communicator.
“In reality, he was, actually, more like a star and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had his own agenda which included promoting Varoufakis's publications and testing out his own theories using Greece instead of truly fighting for the country's economic stability.
Tsipras wrote that those negotiations to avoid insolvency were “not just a way of achieving a better deal for Greece. They became an experiment, a monumental chance to prove the validity of his economic theories.”
Critical Negotiations
Amid tense discussions, the country came perilously on the brink of leaving the single currency area.
At stake was both the country's destiny and the severe cutbacks demanded in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the excoriating bailout terms were put to a popular referendum, a move which plunged Europe into a deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed austerity, Tsipras had little option but to reject its outcome then agree to a bailout package with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for a deal that required intricate and sensitive handling.”
He further claimed that Varoufakis's aggressive approach made him more and more alone among peers, endangered the country, and assisted hawks who were advocating Grexit.
The retelling of history has been met with anger along with shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
