In a newly released personal account, called Ithaki, the former premier Tsipras does not hold back as he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he appointed the unorthodox academic Varoufakis to be his finance minister largely because of the latter's global profile and his “extremely attractive” abilities as a public orator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests how Varoufakis had his own agenda which included promoting his books and testing out his economic models using Greece rather than truly fighting for its economic stability.
He noted how the discussions to avoid bankruptcy became “not just a method to secure a better deal for Greece. They were an experiment, an historic chance to prove the truth of his ideas.”
High-Stakes Negotiations
Amid volatile negotiations, the country came perilously on the brink of leaving the single currency area.
On the line lay both the country's future but also those punishing austerity policies required in return for bailout funds from international creditors.
Failed Options
Attempts to find funds elsewhere, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move which plunged the EU into further existential crisis.
Even though the referendum was carried resoundingly by voters against austerity, the prime minister had little option to reject its outcome and negotiate a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a secondary currency and distributing vouchers to pensioners, the leader knew that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis demonstrated himself “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also claimed how Varoufakis's confrontational style left him more and more alone among peers, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has provoked anger and shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
