Within his newly released autobiography, titled Ithaki, the former leader Tsipras pulls no punches as he reflects on that chaotic period during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, Tsipras selected the maverick academic Varoufakis to be the finance minister mainly due to the latter's global profile along with his highly compelling skills when it came to communicator.
“In reality, he was, in reality, more like a star and less of an economic expert,” stated Tsipras.
Clashing Priorities
The former leader alleges how Varoufakis had a personal agenda which included promoting Varoufakis's books and testing out his economic models on the nation rather than genuinely advocating its financial survival.
He wrote how those talks to avoid bankruptcy became “not just a way to secure a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense negotiations, the country came dangerously close to exiting the eurozone.
At stake lay not only Greece's future but also those punishing austerity measures demanded in exchange for bailout funds by foreign lenders.
Failed Options
Efforts to secure financing from other sources, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, an action which threw the EU into deeper crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and negotiate a rescue deal with creditors which turned out to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end and asked him: “Is this for real?”
Lasting Criticism
In the book, the author asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
Tsipras further wrote how Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, while assisted hardliners that were pushing for Grexit.
The account of events has provoked fury along with shock among certain groups, while Varoufakis has so far maintained a deafening silence regarding these claims.
