In a freshly published memoir, titled Ithaki, the ex- prime minister Tsipras pulls no punches while he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's version, he selected the maverick economist Varoufakis to be the treasury head mainly because of the latter's worldwide fame and Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis had his own agenda which included advancing Varoufakis's publications and testing out his game theories on the nation instead of truly fighting for its financial survival.
Tsipras explained how the talks to stave off insolvency became “not only a way to secure improved terms for the country. They were a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, Greece came dangerously close to exiting the single currency area.
On the line lay not only the country's destiny but also the punishing cutbacks demanded in return for financial aid by international creditors.
Unsuccessful Options
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, a move that plunged the EU into a further existential crisis.
Even though the vote was carried decisively by those against the cuts, Tsipras was forced but to ignore the result and negotiate a bailout package with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of publications the world over … he gave the impression he relished the spotlight.”
When the minister proposed a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that his former ally had proved himself “unfit for a deal demanding complex and delicate management.”
Tsipras also wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, and assisted hawks who were advocating a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
