Within his recently unveiled memoir, titled Ithaki, the former premier Tsipras does not hold back while he reflects on that chaotic era of Greece's debt drama.
An Unconventional Choice
In the ex-PM's version, he chose that maverick academic Varoufakis as his treasury head primarily because of his global profile and his very persuasive abilities as a communicator.
“He was, in reality, more of a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief had a personal motives which included promoting his books and experimenting with his game theories using Greece instead of genuinely fighting for the country's economic stability.
He noted that the negotiations to avoid insolvency were “not only a way of achieving improved terms for the country. They were a test, a monumental opportunity to prove the truth of Varoufakis's ideas.”
Critical Talks
Amid volatile negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake lay both the country's future but also the punishing cutbacks required in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were put to a public vote, a move which threw the EU into deeper existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, the prime minister had little option to reject its outcome and agree to a bailout package with creditors that proved to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan involving creating a parallel currency and distributing coupons to pensioners, Tsipras knew it was game over questioning him: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed how his aggressive approach left him more and more alone among peers, endangered the country, and helped hardliners that were advocating Grexit.
The retelling of history has been met with fury and shock among certain groups, whereas the former minister has maintained a deafening silence on the matter.