Within his freshly published personal account, called Ithaki, the former premier Tsipras does not hold back as he reflects on that chaotic era during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, he appointed that maverick academic Varoufakis as his treasury head primarily because of the latter's global profile along with Varoufakis's highly compelling skills when it came to public orator.
“He was, truthfully, more of a star rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief possessed his own agenda which included promoting his publications as well as experimenting with his own theories using Greece rather than truly advocating its economic stability.
Tsipras noted that the talks to avoid bankruptcy were “not only a way to secure a better deal for Greece. They became a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece came perilously on the brink of exiting the single currency area.
At stake was not only the country's future and the severe cutbacks demanded in return for bailout funds by foreign lenders.
Failed Options
Attempts to find funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move which threw Europe into a deeper existential crisis.
Even though the vote was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome then agree to a bailout package from creditors that proved to be even harsher.
Final Straw
The ex-PM claimed that he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted publicity, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving creating a parallel currency as well as issuing vouchers to pensioners, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for a deal that required complex and delicate management.”
He also claimed that Varoufakis's aggressive style left him more and more alone among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
This account of history has provoked fury and shock in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.