Within his newly released autobiography, named Ithaki, the former premier Tsipras does not hold back as he reflects on that chaotic period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, he appointed the unorthodox economist Varoufakis to be the finance minister largely due to his international reputation along with his very persuasive abilities as a communicator.
“In reality, he was, actually, more like a star and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras claims how his finance chief possessed a personal agenda that included promoting Varoufakis's publications and testing out his own theories using Greece instead of truly advocating the country's economic stability.
Tsipras wrote how the talks to avoid insolvency were “not just a way to secure a better deal for the country. They became a test, a monumental chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country came perilously close to exiting the eurozone.
On the line was both Greece's destiny and the severe austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate appeal to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that plunged the EU into a deeper crisis of identity.
Although the referendum was carried resoundingly by those against the cuts, Tsipras was forced to reject its outcome then agree to a bailout package from creditors which turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who attracted media attention, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency and distributing coupons to retirees, the leader knew it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally had proved himself “unfit for a deal that required complex and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive style left him more and more alone among peers, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This retelling of events has provoked fury along with stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet regarding these claims.
