In a newly released personal account, titled Ithaki, the ex- leader Tsipras does not hold back while he revisits the turbulent era of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras appointed that maverick economist Varoufakis to be the finance minister primarily because of the latter's international reputation along with Varoufakis's “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had a personal agenda which involved advancing Varoufakis's publications as well as testing out his own economic models on the nation instead of genuinely advocating the country's economic stability.
Tsipras wrote how those negotiations to stave off insolvency were “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
During volatile discussions, Greece found itself dangerously close to leaving the single currency area.
At stake was not only Greece's destiny but also the severe austerity measures demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find financing from other sources, including a desperate plea to the Kremlin to buy Greek bonds, were rejected.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were subjected to a public vote, a move which threw Europe into a deeper existential crisis.
Even though the vote was won resoundingly by voters against austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal with creditors which proved to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, the author asserts how Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
Tsipras also wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The account of history has been met with anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
