In a newly released autobiography, called Ithaki, the former leader Tsipras does not hold back as he examines that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, Tsipras appointed the maverick academic Varoufakis as the finance minister largely due to his international reputation and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more of a personality and less of an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief had a personal agenda which involved advancing his publications and testing out his own economic models using the nation rather than genuinely advocating the country's economic stability.
Tsipras explained how those talks to avoid bankruptcy were “not just a method of achieving improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, Greece found itself perilously close to exiting the single currency area.
At stake was not only Greece's future but also the harsh cutbacks demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those excoriating bailout terms were put to a popular referendum, an action which plunged the EU into a further existential crisis.
Even though the vote was carried decisively by those who opposed austerity, Tsipras had little option to ignore the result then negotiate a rescue deal from creditors that turned out to be tougher.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency and distributing vouchers to retirees, the leader said he realised it was game over questioning him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras asserts how his former ally had proved himself to be “unfit for a deal that required complex and delicate management.”
Tsipras further wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
The retelling of events has provoked anger along with shock among certain groups, while the former minister has so far maintained a conspicuous quiet on the matter.
