In a freshly published memoir, called Ithaki, the former leader Tsipras pulls no punches while he examines the turbulent period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the unorthodox economist Varoufakis as the treasury head mainly due to his international reputation and Varoufakis's highly compelling skills when it came to communicator.
“He was, actually, more of a star rather than an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras claims how his finance chief had a personal motives which involved advancing his books and experimenting with his game theories using the nation rather than genuinely advocating the country's financial survival.
Tsipras wrote how the discussions to avoid bankruptcy became “not only a method of achieving a better deal for Greece. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously close to leaving the single currency area.
On the line lay not only the country's future and those harsh cutbacks required in return for financial aid by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the harsh conditions were put to a popular referendum, a move that threw the EU into a deeper existential crisis.
Even though the referendum was won decisively by voters who opposed the cuts, the prime minister had little option to ignore the result and agree to a bailout package with creditors that turned out to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who appeared on the front pages of magazines globally … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a contingency plan involving establishing a secondary currency and issuing coupons to pensioners, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, Tsipras asserts that his former ally demonstrated himself “unfit for a deal demanding complex and delicate management.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were advocating Grexit.
This account of events has provoked fury along with stunned disbelief in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
