Within his freshly published memoir, named Ithaki, the former premier Tsipras pulls no punches while he reflects on that chaotic era during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, he appointed that maverick academic Varoufakis to be the treasury head mainly due to the latter's international reputation and his very persuasive abilities as a speaker.
“He was, actually, more of a star rather than an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had his own motives that included promoting his books as well as experimenting with his theories on Greece instead of truly advocating its financial survival.
He wrote how those talks to avoid insolvency became “not just a way to secure a better deal for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During volatile discussions, Greece came dangerously close to leaving the eurozone.
On the line lay both the country's future but also those punishing cutbacks demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, a move that threw Europe into further crisis of identity.
Although the vote was won decisively by those against the cuts, Tsipras was forced but to ignore the result then negotiate a rescue deal with creditors that turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras said he realised it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate management.”
He further claimed how Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This account of events has been met with anger and shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet on the matter.
