In a freshly published autobiography, named Ithaki, the former leader Tsipras does not hold back as he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected the unorthodox economist Varoufakis as the treasury head primarily because of the latter's worldwide fame along with Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more like a star and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras claims how Varoufakis had his own agenda which included advancing Varoufakis's publications and testing out his own theories using the nation instead of truly fighting for the country's economic stability.
He explained how the negotiations to avoid insolvency were “not just a method of achieving a better deal for the country. They were a test, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece came perilously close to exiting the single currency area.
On the line was both the country's destiny and the punishing austerity policies required in exchange for bailout funds by international creditors.
Failed Options
Efforts to find funds from other sources, including a desperate plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action which threw Europe into deeper existential crisis.
Although the referendum was carried resoundingly by voters against austerity, the prime minister was forced to ignore the result and negotiate a rescue deal from creditors which turned out to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
When the minister proposed a backup strategy that included creating a secondary currency as well as issuing coupons to retirees, the leader said he realised that it was the end and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive handling.”
Tsipras further claimed that his confrontational approach left him more and more alone with colleagues, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with anger along with stunned disbelief among certain groups, while the former minister has so far kept a deafening silence on the matter.
