In a freshly published personal account, named Ithaki, the ex- premier Tsipras spares no criticism as he reflects on that turbulent period of Greece's debt drama.
A Controversial Appointment
In the ex-PM's account, Tsipras appointed that maverick academic Varoufakis to be his finance minister mainly because of his worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more like a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal motives that involved promoting Varoufakis's publications and experimenting with his theories on Greece instead of truly advocating its financial survival.
Tsipras noted that the discussions to prevent insolvency were “not only a method to secure improved terms for the country. They became a test, an historic opportunity to demonstrate the truth of his ideas.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously on the brink of exiting the eurozone.
At stake was both the country's future but also the punishing cutbacks demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those excoriating bailout terms were subjected to a popular referendum, an action which plunged the EU into a deeper crisis of identity.
Even though the referendum was carried decisively by those against the cuts, the prime minister had little option but to ignore the result then negotiate a bailout package from foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy involving establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised it was game over and asked him: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and delicate management.”
He also claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with anger and stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
