In a recently unveiled memoir, titled Ithaki, the ex- premier Tsipras pulls no punches as he examines that turbulent period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he selected the maverick economist Varoufakis as his finance minister primarily due to the latter's international reputation along with Varoufakis's very persuasive skills when it came to communicator.
“He was, truthfully, more like a personality rather than an economist,” recalled Tsipras.
Clashing Priorities
Tsipras claims that Varoufakis possessed a personal agenda that included promoting his publications and testing out his own theories using Greece rather than genuinely fighting for its economic stability.
He wrote how those negotiations to avoid insolvency became “not only a way of achieving a better deal for Greece. They became an experiment, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake lay not only Greece's destiny and the punishing austerity measures required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to secure funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Helping the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, those excoriating conditions were subjected to a public vote, a move that plunged the EU into deeper crisis of identity.
Although the referendum was won decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome and agree to a bailout package with creditors that turned out to be more severe.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications globally … it seemed he relished the spotlight.”
When the minister outlined a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, the leader knew that it was the end and asked him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally had proved himself “unfit for an agreement that required complex and sensitive management.”
Tsipras also wrote how his aggressive style made him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
