In a newly released personal account, called Ithaki, the former prime minister Tsipras spares no criticism as he examines that turbulent period during Greece's debt drama.
An Unconventional Choice
In Tsipras's recollections, he chose the unorthodox economist Varoufakis to be the treasury head primarily because of the latter's international reputation and Varoufakis's highly compelling skills as a speaker.
“He was, actually, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief had his own agenda that involved promoting Varoufakis's books as well as experimenting with his own game theories on the nation instead of truly advocating its financial survival.
Tsipras explained how the discussions to stave off bankruptcy were “not just a way to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the eurozone.
On the line was not only Greece's future and those punishing cutbacks required in exchange for bailout funds from international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, including a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the harsh bailout terms were put to a public vote, an action that plunged the EU into a further crisis of identity.
Even though the referendum was carried decisively by those against the cuts, Tsipras had little option but to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as distributing coupons to pensioners, the leader knew it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief in some quarters, while the former minister has maintained a deafening silence regarding these claims.
