In a newly released memoir, titled Ithaki, the ex- leader Tsipras pulls no punches while he examines that turbulent period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, he selected that unorthodox economist Varoufakis as his treasury head primarily due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to communicator.
“He was, in reality, more of a celebrity and less of an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader claims that his finance chief had a personal motives which included promoting his books as well as testing out his own theories using Greece instead of truly fighting for the country's financial survival.
Tsipras noted how those talks to avoid insolvency were “not just a method to secure improved terms for Greece. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's economic theories.”
Critical Negotiations
During volatile negotiations, the country came dangerously close to leaving the eurozone.
At stake lay not only Greece's future and those punishing austerity measures required in return for financial aid by international creditors.
Failed Alternatives
Attempts to secure financing elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a popular referendum, a move that threw Europe into deeper existential crisis.
Even though the vote was carried resoundingly by voters who opposed the cuts, Tsipras had little option to ignore the result then agree to a rescue deal from foreign lenders which turned out to be more severe.
Breaking Point
Tsipras revealed that he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a contingency plan that included creating a parallel currency and issuing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for an agreement that required intricate and delicate management.”
Tsipras also claimed how his confrontational approach made him increasingly isolated among peers, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
