Within his recently unveiled autobiography, called Ithaki, the former leader Tsipras pulls no punches while he revisits the turbulent period during Greece's financial crisis.
A Controversial Choice
According to Tsipras's recollections, he selected the unorthodox academic Varoufakis as his finance minister mainly because of his global profile along with his very persuasive skills as a communicator.
“He was, actually, more like a star rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader alleges that his finance chief had a personal motives that included promoting his publications and testing out his own theories on the nation instead of truly fighting for the country's economic stability.
He explained that those negotiations to stave off insolvency became “not just a method of achieving improved terms for Greece. They were a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece found itself dangerously on the brink of exiting the eurozone.
On the line lay both the country's future but also the punishing austerity measures demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those harsh conditions were put to a popular referendum, an action which plunged Europe into deeper crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option but to ignore the result and agree to a rescue deal from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who drew media attention, who graced the covers of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a backup strategy involving creating a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis had proved himself “unsuitable for a deal that required complex and delicate handling.”
He also wrote that Varoufakis's confrontational style made him more and more alone with colleagues, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The retelling of history has provoked anger along with stunned disbelief among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
