In a recently unveiled memoir, named Ithaki, the former prime minister Tsipras spares no criticism while he examines that chaotic era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he chose that unorthodox economist Varoufakis as his treasury head largely because of the latter's global profile and Varoufakis's very persuasive skills as a public orator.
“He was, actually, more like a personality and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis possessed his own motives that included promoting his publications and experimenting with his own economic models using the nation instead of truly fighting for its economic stability.
Tsipras noted how the negotiations to prevent bankruptcy became “not only a way of achieving improved terms for Greece. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came dangerously on the brink of exiting the single currency area.
At stake lay not only Greece's future but also those harsh austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, an action that threw Europe into further existential crisis.
Although the referendum was carried resoundingly by voters against the cuts, Tsipras had little option but to ignore the result and negotiate a bailout package from foreign lenders that proved to be tougher.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to retirees, Tsipras said he realised it was game over questioning him: “Are you serious?”
Enduring Rebuke
In the book, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate management.”
He also wrote that his aggressive style left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
This account of history has provoked fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet regarding these claims.