In a freshly published memoir, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that chaotic period during Greece's economic turmoil.
An Unconventional Choice
As per the ex-PM's recollections, he selected the unorthodox academic Varoufakis as his finance minister mainly because of the latter's worldwide fame and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges that his finance chief had a personal motives that included promoting Varoufakis's publications and experimenting with his own game theories on the nation instead of genuinely advocating its economic stability.
He noted how those negotiations to prevent insolvency were “not just a method of achieving a better deal for the country. They were a test, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously on the brink of leaving the single currency area.
On the line lay both Greece's future but also the severe cutbacks demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Efforts to secure funds from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive bailout terms were subjected to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Even though the vote was won resoundingly by those against the cuts, the prime minister had little option to ignore the result then agree to a bailout package with foreign lenders which turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the book, Tsipras asserts how his former ally had proved himself to be “unfit for an agreement that required complex and sensitive management.”
He also wrote how his confrontational style left him increasingly isolated among peers, put Greece at risk, while assisted hawks who were advocating a Greek exit from the euro.
This account of events has been met with anger along with shock in some quarters, whereas the former minister has so far maintained a conspicuous quiet regarding these claims.
