In a recently unveiled memoir, called Ithaki, the former leader Tsipras does not hold back as he examines the chaotic era of Greece's debt drama.
A Controversial Choice
In Tsipras's account, Tsipras appointed that unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, in reality, more like a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had a personal agenda which included promoting his books as well as testing out his theories on the nation rather than truly fighting for the country's financial survival.
Tsipras explained how those negotiations to avoid insolvency were “not just a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, Greece came perilously close to leaving the single currency area.
On the line was not only Greece's destiny and those punishing austerity policies required in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, a move which plunged the EU into deeper existential crisis.
Although the vote was won resoundingly by voters who opposed the cuts, the prime minister had little option to reject its outcome then agree to a rescue deal with creditors that proved to be tougher.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he relished his new role.”
After the minister proposed a contingency plan that included establishing a secondary currency and distributing coupons to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras concludes how his former ally demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
Tsipras further claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet regarding these claims.
