In a freshly published personal account, named Ithaki, the ex- premier Tsipras spares no criticism as he examines that chaotic period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's recollections, he selected the unorthodox academic Varoufakis to be the finance minister primarily because of his global profile and Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more of a star and less of an economist,” stated the 51-year-old.
Clashing Priorities
The former leader alleges that Varoufakis possessed a personal agenda which included promoting Varoufakis's books and testing out his theories using Greece rather than truly advocating its financial survival.
Tsipras explained that those discussions to prevent insolvency became “not only a method to secure a better deal for Greece. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, the country came perilously close to exiting the single currency area.
On the line lay both the country's future and those punishing austerity measures demanded in exchange for rescue loans from international creditors.
Failed Options
Efforts to find financing elsewhere, such as a desperate plea to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a public vote, a move which plunged the EU into a deeper crisis of identity.
Although the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option to reject its outcome and negotiate a bailout package from foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan involving establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised it was game over questioning him: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, while helped hawks that were pushing for Grexit.
This retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
