In a newly released memoir, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's debt drama.
An Unconventional Appointment
In Tsipras's version, Tsipras chose that unorthodox academic Varoufakis as the treasury head primarily due to the latter's worldwide fame and his “extremely attractive” skills when it came to public orator.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader claims how Varoufakis possessed a personal agenda which included promoting Varoufakis's publications and testing out his game theories on Greece instead of truly fighting for the country's financial survival.
He explained how those talks to stave off insolvency became “not only a way to secure improved terms for Greece. They were a test, a monumental chance to demonstrate the validity of his theories.”
Critical Negotiations
Amid volatile negotiations, the country found itself dangerously on the brink of leaving the single currency area.
At stake lay not only Greece's future and the harsh austerity policies required in exchange for financial aid by foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that threw Europe into further existential crisis.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome and negotiate a rescue deal with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was game over and asked him: “Are you serious?”
Enduring Criticism
Within the memoir, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational approach left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating a Greek exit from the euro.
The account of history has provoked fury and stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
