In a newly released memoir, titled Ithaki, the former leader Tsipras does not hold back as he revisits that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras appointed the maverick economist Yanis Varoufakis as the finance minister mainly because of the latter's worldwide fame and his very persuasive skills when it came to speaker.
“He was, truthfully, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader suggests that Varoufakis possessed a personal agenda which involved advancing Varoufakis's publications as well as experimenting with his own economic models using Greece rather than genuinely advocating its economic stability.
He wrote that those discussions to prevent bankruptcy were “not just a method of achieving improved terms for Greece. They became an experiment, a monumental chance to prove the truth of his economic theories.”
High-Stakes Talks
During tense discussions, the country came perilously on the brink of exiting the eurozone.
At stake lay both Greece's destiny and the punishing austerity measures required in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate plea to the Kremlin to buy Greek bonds, went unanswered.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the excoriating bailout terms were put to a popular referendum, a move which threw the EU into further existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result then agree to a bailout package from creditors which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who graced the covers of publications globally … it seemed he relished his new role.”
After the minister outlined a contingency plan that included establishing a secondary currency as well as issuing vouchers to retirees, the leader knew it was the end questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive handling.”
He further wrote that Varoufakis's aggressive approach left him more and more alone among peers, put Greece at risk, and assisted hardliners that were advocating Grexit.
This retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.