In a recently unveiled memoir, titled Ithaki, the ex- premier Tsipras does not hold back while he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's recollections, Tsipras appointed that maverick economist Varoufakis to be his treasury head primarily due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a communicator.
“He was, in reality, more like a celebrity rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader claims how Varoufakis had a personal agenda that involved promoting his publications as well as testing out his own theories using the nation instead of genuinely fighting for its financial survival.
Tsipras wrote how the discussions to prevent bankruptcy became “not only a method of achieving a better deal for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Talks
Amid rollercoaster discussions, the country came perilously on the brink of leaving the eurozone.
On the line lay both the country's destiny but also the severe austerity policies required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin reportedly told Tsipras in Moscow.
Public Vote and Reversal
That summer, those harsh conditions were subjected to a popular referendum, a move which threw the EU into deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, the prime minister was forced but to ignore the result and negotiate a rescue deal with creditors that proved to be even harsher.
Final Straw
Tsipras claimed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who appeared on the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, Tsipras knew it was the end and asked him: “Is this for real?”
Enduring Rebuke
Within the book, the author asserts how his former ally demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He further wrote that Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, while helped hawks who were pushing for Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, whereas the former minister has maintained a deafening silence regarding these claims.
