In a newly released autobiography, named Ithaki, the former premier Tsipras does not hold back as he reflects on that turbulent era during Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, Tsipras appointed the unorthodox economist Varoufakis as the finance minister primarily because of his international reputation and Varoufakis's highly compelling skills when it came to communicator.
“He was, actually, more of a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how his finance chief possessed a personal agenda which involved advancing Varoufakis's books as well as experimenting with his game theories using the nation rather than truly advocating its economic stability.
He noted that those talks to stave off bankruptcy were “not only a method to secure a better deal for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, the country came dangerously close to leaving the single currency area.
On the line was both the country's future and those severe austerity policies demanded in exchange for bailout funds from foreign lenders.
Failed Options
Efforts to secure financing elsewhere, including a desperate plea to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, a move that threw Europe into a deeper crisis of identity.
Even though the vote was carried resoundingly by those against austerity, Tsipras was forced but to ignore the result and negotiate a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew media attention, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving creating a secondary currency as well as issuing vouchers to retirees, Tsipras knew it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating Grexit.
This retelling of history has provoked anger and stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
