Within his newly released memoir, called Ithaki, the former premier Tsipras does not hold back as he examines the chaotic era during Greece's economic turmoil.
A Controversial Appointment
As per Tsipras's recollections, Tsipras selected the maverick academic Varoufakis as his finance minister mainly due to his global profile along with his “extremely attractive” abilities when it came to communicator.
“In reality, he was, in reality, more of a personality rather than an economist,” wrote Tsipras.
Clashing Agendas
Tsipras suggests that his finance chief had a personal motives that involved promoting Varoufakis's books and experimenting with his own theories on Greece rather than genuinely fighting for its financial survival.
He wrote that the discussions to avoid bankruptcy became “not only a method to secure improved terms for Greece. They were a test, an historic opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself dangerously close to leaving the single currency area.
At stake lay not only the country's future but also those severe austerity measures demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the harsh bailout terms were put to a popular referendum, a move which threw the EU into a deeper existential crisis.
Even though the vote was won resoundingly by those against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal from creditors which turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras further claimed that his confrontational approach left 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 provoked anger and shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.