Within his freshly published memoir, titled Ithaki, the former premier Tsipras does not hold back as he reflects on that chaotic period during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, Tsipras selected that maverick economist Varoufakis as the finance minister largely because of the latter's worldwide fame along with his highly compelling skills as a communicator.
“He was, in reality, more of a star and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief had his own motives which involved promoting Varoufakis's books and testing out his economic models on the nation instead of truly advocating its economic stability.
Tsipras explained that the talks to prevent bankruptcy were “not only a way to secure a better deal for Greece. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, the country found itself perilously on the brink of exiting the eurozone.
On the line lay both the country's future but also the punishing austerity measures required in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those harsh conditions were put to a popular referendum, an action which threw the EU into deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras was forced but to ignore the result and agree to a rescue deal from foreign lenders that turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After the minister outlined a contingency plan involving creating a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal that required complex and sensitive handling.”
Tsipras also claimed that his confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has provoked fury and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
