In a freshly published autobiography, titled Ithaki, the ex- leader Tsipras spares no criticism while he reflects on that chaotic period of Greece's financial crisis.
A Controversial Appointment
In the ex-PM's version, he appointed the unorthodox economist Varoufakis to be the finance minister primarily because of the latter's worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“He was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how Varoufakis had his own agenda that included advancing Varoufakis's publications as well as testing out his own theories on the nation rather than genuinely advocating its financial survival.
He noted how those negotiations to stave off bankruptcy became “not just a method to secure improved terms for Greece. They became an experiment, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line was not only the country's future but also the severe austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure funds from other sources, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the harsh conditions were subjected to a popular referendum, an action that plunged the EU into further crisis of identity.
Even though the referendum was carried resoundingly by those who opposed the cuts, Tsipras was forced but to reject its outcome and agree to a rescue deal with foreign lenders which proved to be tougher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and distributing coupons to pensioners, Tsipras knew that it was game over and asked him: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
He further claimed how Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with fury and stunned disbelief among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
