In a freshly published autobiography, named Ithaki, the former leader Tsipras spares no criticism as he reflects on that chaotic era of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, he appointed the unorthodox academic Varoufakis as his finance minister largely because of his global profile along with his very persuasive skills when it came to speaker.
“He was, actually, more like a star rather than an economist,” stated the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed a personal motives which involved promoting his publications and testing out his own theories on Greece rather than truly advocating its economic stability.
He wrote that those negotiations to prevent insolvency became “not only a way to secure improved terms for the country. They became an experiment, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
At stake lay both Greece's future and those harsh austerity measures required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, those excoriating bailout terms were subjected to a public vote, an action that threw the EU into deeper crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras was forced to ignore the result and negotiate a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras also wrote how Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
This account of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
