Within his recently unveiled personal account, called Ithaki, the former prime minister Tsipras spares no criticism as he examines that chaotic era during Greece's economic turmoil.
An Unconventional Choice
In Tsipras's account, he selected the maverick academic Varoufakis as the finance minister largely due to the latter's global profile and his very persuasive skills when it came to communicator.
“In reality, he was, actually, more of a star and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis had his own agenda which included promoting Varoufakis's books as well as testing out his own theories on Greece rather than genuinely advocating the country's economic stability.
He wrote that the negotiations to stave off insolvency were “not just a method of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid volatile negotiations, Greece found itself dangerously close to exiting the single currency area.
On the line was not only Greece's destiny but also those punishing cutbacks required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as an urgent appeal to the Kremlin to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Although the referendum was won decisively by voters against austerity, the prime minister had little option but to ignore the result and negotiate a rescue deal from creditors which turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the front pages of publications globally … it seemed he relished his new role.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
Tsipras further wrote that his aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of history has been met with anger and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
