In a freshly published personal account, titled Ithaki, the former prime minister Tsipras spares no criticism as he reflects on that chaotic period of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's version, he selected the maverick economist Varoufakis to be his treasury head mainly due to his global profile and Varoufakis's very persuasive skills as a communicator.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief possessed his own agenda that involved advancing his books and testing out his game theories using Greece rather than truly fighting for its financial survival.
Tsipras noted that the negotiations to prevent bankruptcy were “not just a method to secure improved terms for the country. They were an experiment, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, the country found itself perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny but also those punishing austerity policies required in return for financial aid by international creditors.
Failed Options
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
In July 2015, those punitive bailout terms were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Although the referendum was won resoundingly by those against austerity, Tsipras had little option but to ignore the result then negotiate a bailout package from foreign lenders that turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
After the minister proposed a contingency plan involving creating a secondary currency as well as distributing vouchers to retirees, Tsipras knew that it was game over and asked Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally had proved himself “unfit for an agreement demanding intricate and sensitive management.”
Tsipras further claimed that Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
