In a newly released autobiography, titled Ithaki, the former prime minister Tsipras pulls no punches as he reflects on that chaotic era of Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's version, he chose the unorthodox academic Varoufakis to be his finance minister primarily due to the latter's worldwide fame along with his very persuasive abilities when it came to public orator.
“In reality, he was, in reality, more like a celebrity rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader alleges how Varoufakis possessed a personal agenda that involved advancing his publications as well as testing out his economic models using Greece instead of truly fighting for the country's economic stability.
He explained how the talks to prevent bankruptcy became “not only a way of achieving a better deal for Greece. They were an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake was both Greece's future and those severe cutbacks demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, the punitive conditions were subjected to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Although the vote was carried decisively by those who opposed the cuts, Tsipras had little option to reject its outcome then agree to a rescue deal with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a backup strategy that included creating a secondary currency as well as distributing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal that required complex and sensitive handling.”
Tsipras also claimed that his confrontational style left him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock among certain groups, whereas Varoufakis has so far kept a deafening silence regarding these claims.
