Within his recently unveiled autobiography, called Ithaki, the former prime minister Tsipras pulls no punches while he reflects on that chaotic era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, Tsipras chose the unorthodox economist Varoufakis to be his finance minister primarily because of the latter's worldwide fame and his highly compelling skills when it came to speaker.
“He was, in reality, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims how his finance chief had a personal agenda that included promoting Varoufakis's publications and experimenting with his own game theories on Greece instead of genuinely fighting for its economic stability.
He noted that the talks to stave off bankruptcy became “not just a way of achieving improved terms for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of his economic theories.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to leaving the eurozone.
At stake lay both Greece's future and the punishing austerity policies required in exchange for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, a move that plunged the EU into further crisis of identity.
Even though the vote was carried resoundingly by those who opposed austerity, Tsipras had little option but to reject its outcome then negotiate a rescue deal from creditors which proved to be tougher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, the leader said he realised that it was game over and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras concludes how his former ally had proved himself “unfit for an agreement that required intricate and delicate management.”
Tsipras also claimed that his confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hawks that were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence on the matter.
