In a recently unveiled memoir, titled Ithaki, the ex- leader Tsipras spares no criticism as he reflects on that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's version, he appointed that maverick economist Varoufakis as the treasury head primarily due to the latter's international reputation and his very persuasive skills when it came to public orator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader claims how his finance chief possessed a personal motives which involved advancing Varoufakis's books and experimenting with his economic models using the nation rather than truly advocating the country's economic stability.
Tsipras noted that the negotiations to avoid insolvency became “not just a way to secure a better deal for the country. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, Greece found itself perilously close to exiting the eurozone.
On the line lay not only the country's future and those harsh austerity policies demanded in return for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to secure financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, a move which plunged Europe into a deeper crisis of identity.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal from creditors which proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a contingency plan involving establishing a secondary currency and issuing vouchers to retirees, Tsipras said he realised it was game over and asked him: “Is this for real?”
Enduring Criticism
In the book, the author asserts that his former ally had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
He further claimed that his confrontational approach made him more and more alone with colleagues, put Greece at risk, and helped hawks that were pushing for Grexit.
This account of events has been met with anger and shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
