In a newly released autobiography, titled Ithaki, the ex- leader Tsipras does not hold back as he examines the turbulent period during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's recollections, he selected that maverick economist Yanis Varoufakis to be his treasury head mainly due to the latter's international reputation and his “extremely attractive” abilities as a speaker.
“He was, actually, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras claims that Varoufakis possessed a personal agenda which involved promoting Varoufakis's books as well as experimenting with his own theories using the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained how the talks to stave off insolvency were “not only a method to secure improved terms for Greece. They were an experiment, a monumental chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid tense discussions, the country came dangerously close to leaving the single currency area.
On the line was not only the country's destiny but also the severe austerity policies demanded in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to secure financing from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
In July 2015, the punitive bailout terms were put to a public vote, an action that threw the EU into deeper existential crisis.
Although the vote was carried decisively by those against the cuts, the prime minister had little option but to reject its outcome then agree to a rescue deal from creditors which turned out to be more severe.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a secondary currency and issuing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal that required complex and delicate management.”
He further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, and helped hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked anger and shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.