In a recently unveiled personal account, called Ithaki, the former premier Tsipras spares no criticism as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
As per Tsipras's account, Tsipras appointed the maverick economist Varoufakis to be his treasury head primarily due to his worldwide fame along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, in reality, more of a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis possessed his own agenda that involved advancing his publications and experimenting with his economic models using the nation rather than genuinely advocating the country's financial survival.
He noted that those negotiations to stave off bankruptcy were “not just a way to secure a better deal for Greece. They were an experiment, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself dangerously close to exiting the single currency area.
On the line lay both the country's future and the harsh austerity measures demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to secure financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that threw Europe into a deeper existential crisis.
Although the vote was won decisively by voters who opposed austerity, the prime minister had little option to ignore the result then agree to a rescue deal from creditors that turned out to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and delicate management.”
Tsipras further wrote that Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has maintained a conspicuous quiet regarding these claims.
