Within his recently unveiled memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent era during Greece's financial crisis.
An Unconventional Choice
In Tsipras's account, he appointed that unorthodox economist Varoufakis to be his finance minister largely due to his international reputation and his “extremely attractive” abilities when it came to communicator.
“In reality, he was, in reality, more like a celebrity rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras alleges that his finance chief had his own agenda which included advancing Varoufakis's publications and testing out his economic models using the nation instead of genuinely fighting for its financial survival.
Tsipras explained that the negotiations to avoid insolvency became “not only a method of achieving improved terms for Greece. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Talks
During volatile negotiations, the country found itself perilously close to leaving the eurozone.
At stake lay not only the country's destiny and the harsh austerity measures required in exchange for bailout funds from foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the excoriating bailout terms were put to a public vote, an action which plunged the EU into a deeper existential crisis.
Although the referendum was carried decisively by voters against austerity, Tsipras had little option to ignore the result and agree to a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes that his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
He also claimed how his confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were advocating Grexit.
This retelling of history has been met with fury along with shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
