Within his newly released autobiography, titled Ithaki, the ex- prime minister Tsipras pulls no punches as he reflects on the turbulent period during Greece's financial crisis.
A Controversial Choice
As per Tsipras's account, he appointed the maverick academic Varoufakis to be his finance minister largely because of the latter's international reputation and his “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader alleges that his finance chief had his own motives which involved promoting Varoufakis's books and testing out his own economic models using Greece instead of truly advocating the country's financial survival.
He explained that the discussions to prevent insolvency were “not only a way of achieving a better deal for the country. They were a test, a monumental chance to prove the validity of his ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was not only the country's destiny and those severe austerity policies demanded in return for bailout funds by foreign lenders.
Failed Alternatives
Attempts to find funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those excoriating bailout terms were put to a public vote, a move that threw Europe into further crisis of identity.
Although the referendum was carried decisively by voters against austerity, Tsipras had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew media attention, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes that his former ally had proved himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also claimed how Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
