In a recently unveiled personal account, called Ithaki, the former prime minister Tsipras does not hold back while he revisits that turbulent era during Greece's debt drama.
A Controversial Appointment
As per the ex-PM's recollections, Tsipras appointed the maverick economist Varoufakis as the treasury head primarily because of the latter's international reputation along with his very persuasive skills as a communicator.
“In reality, he was, in reality, more like a personality and less of an economist,” stated Tsipras.
Conflicting Agendas
The former leader claims that his finance chief had a personal agenda that included promoting Varoufakis's books and testing out his own game theories using Greece instead of truly fighting for its economic stability.
He explained how the negotiations to prevent bankruptcy were “not only a method of achieving improved terms for Greece. They were a test, an historic opportunity to demonstrate the truth of his theories.”
Critical Talks
Amid volatile discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake was both Greece's future and the punishing cutbacks required in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive conditions were put to a public vote, an action that threw the EU into a deeper existential crisis.
Although the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced to ignore the result and negotiate a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement demanding intricate and delicate management.”
He further claimed how Varoufakis's confrontational approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating a Greek exit from the euro.
This account of history has provoked anger along with stunned disbelief among certain groups, while the former minister has so far maintained a deafening silence on the matter.
