In a recently unveiled autobiography, named Ithaki, the ex- prime minister Tsipras pulls no punches while he revisits that turbulent era during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose the maverick economist Varoufakis as the treasury head primarily due to the latter's global profile and his very persuasive skills as a speaker.
“In reality, he was, truthfully, more like a celebrity and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis had his own agenda which involved promoting his publications as well as testing out his theories using the nation instead of genuinely advocating its economic stability.
Tsipras wrote that those discussions to prevent insolvency were “not only a way to secure a better deal for the country. They became a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
Amid volatile negotiations, Greece came dangerously close to exiting the single currency area.
At stake was both the country's destiny and those punishing austerity measures required in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure funds elsewhere, such as an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, a move that threw the EU into deeper existential crisis.
Although the vote was won resoundingly by those who opposed austerity, Tsipras was forced to ignore the result then agree to a bailout package with foreign lenders which proved to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who drew publicity, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes that his former ally had proved himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and helped hardliners that were advocating a Greek exit from the euro.
This account of events has been met with anger and shock among certain groups, while the former minister has so far maintained a deafening silence regarding these claims.
