Within his newly released memoir, called Ithaki, the former prime minister Tsipras spares no criticism as he examines that turbulent era of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, he appointed that maverick economist Varoufakis as the finance minister primarily due to his worldwide fame along with Varoufakis's very persuasive skills as a communicator.
“He was, truthfully, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges that his finance chief possessed a personal agenda that included promoting Varoufakis's books and testing out his theories using Greece instead of genuinely advocating its economic stability.
Tsipras explained that the discussions to prevent insolvency became “not only a way to secure a better deal for Greece. They became a test, a monumental chance to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, Greece found itself dangerously close to leaving the eurozone.
At stake lay both Greece's future but also those harsh cutbacks demanded in return for bailout funds from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move that threw the EU into a deeper existential crisis.
Although the vote was won decisively by voters against austerity, Tsipras had little option but to reject its outcome then agree to a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister proposed a contingency plan that included creating a parallel currency and issuing coupons to pensioners, Tsipras knew it was the end questioning him: “Are you serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis demonstrated himself “unfit for an agreement demanding complex and delicate management.”
Tsipras also wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hawks who were advocating Grexit.
This account of history has provoked fury along with shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
