In a newly released memoir, called Ithaki, the ex- prime minister Tsipras does not hold back while he reflects on the turbulent era during Greece's debt drama.
A Controversial Appointment
In Tsipras's account, he selected the maverick academic Varoufakis as his finance minister mainly because of his global profile and his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had a personal motives which included promoting his publications and testing out his theories on Greece instead of truly advocating the country's financial survival.
He explained how those discussions to prevent insolvency were “not only a way to secure improved terms for Greece. They were a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Talks
Amid volatile negotiations, Greece found itself dangerously close to leaving the single currency area.
On the line was not only Greece's future but also the severe austerity policies required in return for rescue loans by foreign lenders.
Failed Alternatives
Attempts to find financing from other sources, including an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, those excoriating bailout terms were put to a public vote, an action which threw Europe into a deeper crisis of identity.
Although the vote was carried decisively by those against the cuts, Tsipras was forced to ignore the result and negotiate a rescue deal with creditors that turned out to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as issuing coupons to pensioners, the leader knew it was the end and asked him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes that his former ally had proved himself to be “unsuitable for a deal demanding intricate and delicate handling.”
Tsipras also wrote how his aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hardliners that were advocating Grexit.
This account of history has provoked anger and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.