In a newly released personal account, called Ithaki, the former prime minister Tsipras pulls no punches as he revisits that turbulent period of Greece's financial crisis.
A Controversial Choice
As per the ex-PM's recollections, he selected the unorthodox academic Varoufakis as the finance minister largely because of his international reputation and his “extremely attractive” skills when it came to public orator.
“In reality, he was, actually, more of a star rather than an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had a personal agenda which included promoting his books and testing out his own economic models using Greece instead of genuinely fighting for its economic stability.
He explained how those discussions to avoid bankruptcy became “not only a way to secure a better deal for the country. They were a test, an historic opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself perilously close to exiting the eurozone.
On the line was not only Greece's future but also the severe austerity measures required in exchange for bailout funds by foreign lenders.
Failed Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by Reversal
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into a further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome and negotiate a rescue deal with creditors which proved to be even harsher.
Final Straw
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the man who drew publicity, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes how his former ally had proved himself “unfit for a deal that required complex and sensitive handling.”
Tsipras also wrote how Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This retelling of history has provoked anger and shock among certain groups, while the former minister has maintained a conspicuous quiet on the matter.
