In a newly released autobiography, named Ithaki, the former leader Tsipras spares no criticism as he reflects on the chaotic period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's recollections, he appointed that unorthodox academic Varoufakis to be the finance minister largely because of his worldwide fame along with Varoufakis's highly compelling skills as a communicator.
“In reality, he was, truthfully, more of a personality rather than an economist,” stated Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief had a personal motives which involved promoting his publications and testing out his theories using Greece instead of genuinely advocating its economic stability.
He explained that the negotiations to avoid insolvency were “not only a method to secure a better deal for Greece. They became an experiment, a monumental chance to prove the validity of his economic theories.”
Critical Negotiations
During rollercoaster negotiations, Greece came dangerously close to exiting the single currency area.
On the line lay not only the country's future and the punishing austerity policies required in exchange for bailout funds by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the harsh conditions were put to a public vote, an action that threw Europe into deeper crisis of identity.
Although the referendum was won decisively by voters against austerity, the prime minister was forced but to reject its outcome and agree to a bailout package with foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, Tsipras knew that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how his former ally had proved himself to be “unfit for a deal that required complex and sensitive handling.”
He also claimed how Varoufakis's aggressive style made him increasingly isolated among peers, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has provoked anger and stunned disbelief in some quarters, whereas the former minister has kept a deafening silence on the matter.
