Within his newly released autobiography, titled Ithaki, the former prime minister Tsipras does not hold back while he reflects on that turbulent period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's version, Tsipras appointed that unorthodox economist Varoufakis to be the finance minister largely because of the latter's global profile along with Varoufakis's “extremely attractive” abilities when it came to public orator.
“In reality, he was, truthfully, more like a personality rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief had his own agenda which included advancing Varoufakis's publications as well as testing out his own theories using the nation instead of truly fighting for its financial survival.
Tsipras wrote that the discussions to avoid insolvency became “not only a method to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During volatile discussions, Greece found itself dangerously close to leaving the eurozone.
On the line lay both Greece's future but also those harsh austerity policies demanded in return for financial aid from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, such as an urgent plea to Russia to buy Greek bonds, went unanswered.
Helping the indebted country would be equivalent to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, those harsh bailout terms were put to a popular referendum, a move which plunged Europe into deeper existential crisis.
Even though the vote was carried resoundingly by those against the cuts, the prime minister was forced to reject its outcome then negotiate a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving creating a parallel currency as well as issuing vouchers to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and sensitive handling.”
He also wrote how Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hardliners who were advocating Grexit.
This retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
