In a newly released autobiography, titled Ithaki, the former leader Tsipras pulls no punches while he reflects on that turbulent period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, he chose that maverick academic Varoufakis to be the treasury head largely because of the latter's worldwide fame along with Varoufakis's very persuasive skills when it came to public orator.
“In reality, he was, actually, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief had a personal motives which included advancing his publications as well as experimenting with his economic models using Greece instead of genuinely fighting for the country's financial survival.
He noted that those negotiations to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously on the brink of exiting the single currency area.
At stake was not only Greece's future but also the punishing austerity policies demanded in exchange for financial aid by foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, an action that threw the EU into further existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister was forced to reject its outcome then agree to a bailout package with creditors that turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a backup strategy involving creating a secondary currency as well as distributing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the book, the author concludes that his former ally had proved himself to be “unsuitable for an agreement that required complex and delicate handling.”
Tsipras also claimed how his aggressive style left him more and more alone among peers, endangered the country, and helped hawks that were pushing for Grexit.
The account of events has provoked anger and stunned disbelief in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
