In a recently unveiled memoir, titled Ithaki, the former leader Tsipras pulls no punches while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's version, he appointed that unorthodox economist Varoufakis as his treasury head largely because of his international reputation and his very persuasive abilities as a public orator.
“He was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras alleges that his finance chief possessed a personal agenda that involved promoting Varoufakis's books and experimenting with his game theories using Greece instead of truly fighting for its economic stability.
Tsipras explained that those negotiations to prevent insolvency became “not just a way of achieving improved terms for the country. They became a test, an historic chance to prove the truth of Varoufakis's economic theories.”
Critical Talks
During tense negotiations, the country came perilously on the brink of exiting the single currency area.
On the line lay both the country's future but also the punishing austerity policies demanded in exchange for financial aid by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece would be equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, an action that plunged the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by those who opposed austerity, the prime minister was forced to ignore the result and negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy that included creating a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was game over questioning him: “Is this for real?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive handling.”
He also wrote that Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were advocating Grexit.
This account of events has been met with fury along with stunned disbelief among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
