Within his freshly published personal account, named Ithaki, the former leader Tsipras pulls no punches while he reflects on that chaotic era of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, he appointed the maverick economist Varoufakis as his treasury head primarily because of his international reputation and his very persuasive skills as a communicator.
“In reality, he was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras claims how his finance chief had his own agenda that involved advancing Varoufakis's books and experimenting with his own game theories using Greece rather than genuinely advocating its economic stability.
He wrote that the talks to prevent insolvency became “not only a method of achieving a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
Amid tense negotiations, Greece came perilously on the brink of exiting the eurozone.
On the line was both the country's future and the harsh austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, a move which plunged Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters against the cuts, Tsipras was forced to ignore the result then agree to a bailout package from creditors which turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency as well as distributing vouchers to pensioners, the leader knew it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for an agreement that required complex and delicate handling.”
Tsipras further claimed how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, and assisted hawks that were advocating Grexit.
The retelling of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.
