In a recently unveiled autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches while he examines that chaotic period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's version, Tsipras appointed the unorthodox economist Varoufakis as the finance minister largely due to the latter's worldwide fame along with Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges that Varoufakis had a personal agenda which involved advancing Varoufakis's publications as well as testing out his economic models using Greece rather than truly advocating the country's economic stability.
Tsipras noted that the discussions to stave off insolvency became “not just a method of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of his theories.”
High-Stakes Negotiations
Amid volatile discussions, the country came dangerously on the brink of exiting the single currency area.
On the line lay both the country's future but also the harsh austerity policies required in return for rescue loans from international creditors.
Failed Options
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be tantamount to throwing money into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a backup strategy that included creating a parallel currency and issuing coupons to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, Tsipras asserts how his former ally had proved himself to be “unsuitable for an agreement demanding intricate and delicate management.”
Tsipras also claimed that his confrontational style left him more and more alone with colleagues, endangered the country, while assisted hardliners that were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
