In a newly released memoir, titled Ithaki, the former leader Tsipras does not hold back while he reflects on the turbulent period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, he selected the maverick economist Varoufakis to be his treasury head primarily due to his international reputation and Varoufakis's highly compelling abilities as a public orator.
“He was, in reality, more like a personality rather than an economist,” stated the 51-year-old.
Conflicting Agendas
The former leader alleges that his finance chief had a personal agenda which involved promoting Varoufakis's publications as well as testing out his own game theories on Greece instead of genuinely advocating the country's financial survival.
He noted how those talks to avoid bankruptcy were “not only a way of achieving improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line was not only Greece's destiny but also those punishing austerity measures required in return for rescue loans by international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, such as an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, an action which threw Europe into a further existential crisis.
Although the referendum was won decisively by voters who opposed austerity, Tsipras had little option to ignore the result and agree to a bailout package with creditors that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included creating a parallel currency and issuing coupons to pensioners, the leader knew it was the end questioning him: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
This account of events has been met with fury and shock among certain groups, while the former minister has kept a conspicuous quiet on the matter.
