In a newly released autobiography, titled Ithaki, the former premier Tsipras pulls no punches while he examines the turbulent era of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, he selected the unorthodox academic Varoufakis as the finance minister largely due to the latter's worldwide fame along with his highly compelling abilities when it came to speaker.
“In reality, he was, truthfully, more like a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief possessed his own agenda which included promoting Varoufakis's books as well as testing out his game theories on the nation instead of truly fighting for the country's financial survival.
He noted how the discussions to prevent bankruptcy became “not just a method to secure improved terms for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake was both Greece's destiny and the harsh austerity measures required in return for bailout funds by foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, those harsh bailout terms were subjected to a public vote, a move which threw the EU into deeper existential crisis.
Although the referendum was carried decisively by those against the cuts, Tsipras had little option but to reject its outcome then negotiate a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When the minister proposed a contingency plan that included establishing a parallel currency and issuing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive handling.”
He also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has provoked fury along with shock among certain groups, whereas the former minister has kept a conspicuous quiet regarding these claims.
