Within his newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism as he reflects on that turbulent era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he chose that unorthodox economist Varoufakis to be the finance minister largely because of his worldwide fame and Varoufakis's highly compelling skills as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis had his own agenda that included advancing Varoufakis's publications as well as testing out his own economic models on Greece rather than truly advocating its economic stability.
Tsipras wrote how the discussions to stave off bankruptcy were “not only a method to secure improved terms for the country. They became a test, an historic chance to prove the truth of his economic theories.”
High-Stakes Talks
Amid volatile discussions, the country came perilously close to leaving the single currency area.
On the line lay both the country's future and those punishing austerity measures required in return for rescue loans by foreign lenders.
Failed Options
Attempts to secure financing from other sources, including a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a public vote, an action which threw Europe into a further existential crisis.
Although the referendum was won decisively by voters against austerity, the prime minister had little option but to reject its outcome and agree to a rescue deal with creditors that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew publicity, who graced the covers of publications globally … it seemed he relished his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, the leader said he realised that it was the end and asked him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes that his former ally had proved himself “unsuitable for an agreement demanding intricate and sensitive management.”
Tsipras also claimed how his confrontational approach made him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has been met with anger and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
