In a freshly published autobiography, named Ithaki, the former leader Tsipras pulls no punches while he revisits the chaotic period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's recollections, he chose the unorthodox academic Varoufakis as his treasury head primarily due to the latter's international reputation and his “extremely attractive” abilities as a speaker.
“In reality, he was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras suggests that Varoufakis possessed his own agenda that included promoting Varoufakis's publications and experimenting with his economic models using Greece rather than genuinely fighting for the country's economic stability.
Tsipras wrote how those negotiations to avoid insolvency were “not only a method to secure improved terms for Greece. They became a test, an historic chance to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself perilously on the brink of leaving the eurozone.
At stake was not only the country's future but also those punishing austerity measures required in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those harsh conditions were subjected to a public vote, an action which plunged Europe into further existential crisis.
Even though the referendum was carried decisively by those who opposed the cuts, the prime minister was forced to reject its outcome and agree to a rescue deal from foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and distributing coupons to retirees, the leader knew that it was game over and asked him: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras also claimed that Varoufakis's aggressive style made him more and more alone among peers, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The account of events has been met with fury along with stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet on the matter.
