In a freshly published personal account, called Ithaki, the former leader Tsipras pulls no punches while he reflects on that turbulent era of Greece's financial crisis.
A Controversial Appointment
In Tsipras's version, Tsipras selected the unorthodox economist Varoufakis to be his treasury head mainly due to his global profile and Varoufakis's “extremely attractive” skills as a communicator.
“He was, actually, more of a celebrity rather than an economic expert,” stated Tsipras.
Clashing Priorities
The former leader alleges how Varoufakis possessed his own agenda which involved promoting Varoufakis's publications as well as experimenting with his economic models on the nation rather than truly advocating its financial survival.
He noted how the negotiations to avoid bankruptcy were “not only a way of achieving improved terms for Greece. They were an experiment, a monumental chance to prove the validity of Varoufakis's theories.”
Critical Talks
During volatile negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake lay both the country's future and those harsh austerity policies required in exchange for bailout funds by international creditors.
Failed Alternatives
Attempts to find funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, a move that threw the EU into a further crisis of identity.
Although the vote was won decisively by those against austerity, the prime minister had little option but to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, the leader knew it was game over questioning him: “Can you be serious?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
Tsipras further wrote how Varoufakis's confrontational approach made him more and more alone among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief among certain groups, whereas Varoufakis has maintained a deafening silence regarding these claims.
