In a freshly published memoir, titled Ithaki, the former prime minister Tsipras spares no criticism while he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras selected the unorthodox economist Varoufakis as the treasury head mainly due to his worldwide fame along with Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, truthfully, more of a celebrity rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis had a personal agenda which involved promoting his publications as well as testing out his own economic models using the nation instead of truly advocating its financial survival.
He wrote that those talks to prevent insolvency became “not only a method to secure improved terms for Greece. They became an experiment, a monumental chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile discussions, Greece came dangerously on the brink of leaving the single currency area.
At stake was not only Greece's destiny but also those harsh austerity policies demanded in return for bailout funds by international creditors.
Failed Options
Efforts to find funds elsewhere, such as a desperate plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, the harsh bailout terms were put to a popular referendum, an action that plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister was forced but to reject its outcome then agree to a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications globally … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal demanding complex and delicate management.”
Tsipras also wrote that his confrontational approach made him increasingly isolated with colleagues, endangered the country, and helped hardliners who were pushing for Grexit.
The account of history has been met with anger and shock among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
