In a freshly published personal account, titled Ithaki, the former leader Tsipras pulls no punches while he revisits that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed the unorthodox economist Varoufakis as his finance minister largely due to the latter's global profile along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis had his own agenda which involved promoting his publications and testing out his own economic models using Greece instead of truly fighting for the country's economic stability.
Tsipras wrote that those talks to prevent bankruptcy became “not just a way to secure a better deal for the country. They became a test, an historic opportunity to demonstrate the truth of his economic theories.”
Critical Negotiations
Amid tense negotiations, Greece came perilously close to leaving the single currency area.
On the line was both the country's future but also those harsh austerity measures required in return for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to find financing elsewhere, including a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh conditions were subjected to a public vote, an action that plunged Europe into deeper crisis of identity.
Even though the vote was carried resoundingly by voters who opposed the cuts, the prime minister had little option but to ignore the result then negotiate a rescue deal with creditors that proved to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”
Tsipras also claimed how Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for Grexit.
The retelling of events has provoked anger along with shock in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
