Within his newly released autobiography, called Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that turbulent period during Greece's debt drama.
A Controversial Appointment
In Tsipras's recollections, he appointed the maverick academic Varoufakis to be the treasury head primarily due to the latter's international reputation and Varoufakis's very persuasive abilities as a public orator.
“He was, actually, more of a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims how his finance chief had his own agenda which involved promoting Varoufakis's publications as well as testing out his own economic models on Greece rather than genuinely advocating its economic stability.
Tsipras explained that those negotiations to avoid bankruptcy were “not only a method of achieving improved terms for Greece. They became a test, a monumental chance to prove the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously close to exiting the single currency area.
At stake lay not only Greece's destiny and the severe austerity policies required in exchange for financial aid from international creditors.
Failed Options
Efforts to secure financing elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, those punitive bailout terms were subjected to a public vote, a move that threw the EU into further existential crisis.
Even though the referendum was carried decisively by those who opposed the cuts, the prime minister was forced but to reject its outcome then agree to a bailout package with foreign lenders that proved to be tougher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who attracted publicity, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
When the minister proposed a contingency plan that included establishing a parallel currency and issuing vouchers to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and sensitive management.”
Tsipras also claimed how his confrontational style made him increasingly isolated among peers, endangered the country, and helped hawks who were pushing for Grexit.
This retelling of events has provoked fury along with shock among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
