In a newly released personal account, called Ithaki, the former leader Tsipras pulls no punches as he reflects on that turbulent era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's account, he chose that unorthodox economist Varoufakis to be the treasury head mainly because of the latter's global profile and his highly compelling skills as a public orator.
“He was, in reality, more like a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed a personal agenda which involved promoting his books and experimenting with his own theories using the nation instead of truly fighting for the country's economic stability.
Tsipras wrote how the negotiations to prevent insolvency became “not just a way of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
Critical Talks
Amid volatile negotiations, Greece found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's future but also those harsh austerity measures required in return for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, including an urgent plea to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, a move that threw Europe into a further crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister had little option to ignore the result then agree to a bailout package with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
After the minister outlined a contingency plan involving establishing a secondary currency as well as distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how his former ally demonstrated himself to be “unfit for an agreement demanding complex and sensitive management.”
He further wrote how his aggressive style left him more and more alone with colleagues, endangered the country, while helped hardliners that were advocating Grexit.
The account of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
