Within his recently unveiled autobiography, titled Ithaki, the former premier Tsipras pulls no punches while he examines that turbulent period of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, he appointed that unorthodox academic Varoufakis to be the treasury head largely due to the latter's global profile and Varoufakis's highly compelling skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
The former leader suggests that Varoufakis possessed a personal motives that involved promoting Varoufakis's books as well as experimenting with his own theories using the nation instead of truly advocating its financial survival.
Tsipras noted that the discussions to avoid bankruptcy were “not only a way of achieving a better deal for the country. They were an experiment, a monumental opportunity to prove the truth of his economic theories.”
High-Stakes Talks
Amid tense discussions, Greece came perilously close to leaving the single currency area.
At stake lay both the country's future and the severe austerity measures demanded in return for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, an action that plunged the EU into a deeper crisis of identity.
Even though the referendum was carried resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a rescue deal with creditors which proved to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the figure who drew media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis had proved himself to be “unfit for an agreement that required intricate and sensitive management.”
He also claimed how his aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hawks who were advocating Grexit.
This account of history has been met with anger and shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
