Within his freshly published personal account, titled Ithaki, the former leader Tsipras does not hold back as he reflects on the chaotic period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's version, he selected the unorthodox economist Varoufakis to be his finance minister largely because of his global profile and his highly compelling abilities when it came to speaker.
“He was, actually, more like a personality and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges that Varoufakis possessed his own motives which included advancing Varoufakis's publications as well as testing out his own economic models using the nation instead of genuinely advocating the country's economic stability.
He wrote that those negotiations to avoid insolvency were “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, the country came perilously close to exiting the single currency area.
At stake was both the country's future but also the severe austerity measures demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those harsh bailout terms were subjected to a public vote, a move which threw the EU into a deeper existential crisis.
Although the referendum was won decisively by those who opposed the cuts, Tsipras was forced to ignore the result then agree to a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally had proved himself “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also wrote how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hawks that were pushing for Grexit.
This account of history has been met with anger along with shock in some quarters, whereas the former minister has kept a conspicuous quiet on the matter.
