In a newly released memoir, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, he appointed the unorthodox economist Varoufakis as his finance minister largely because of his international reputation and Varoufakis's very persuasive abilities when it came to speaker.
“He was, in reality, more of a star and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges that Varoufakis had a personal motives that included promoting Varoufakis's books as well as experimenting with his own economic models using Greece instead of genuinely fighting for its economic stability.
Tsipras noted that the talks to avoid insolvency were “not just a method to secure a better deal for the country. They were a test, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
On the line lay both Greece's destiny but also those severe cutbacks required in exchange for bailout funds from foreign lenders.
Unsuccessful Options
Attempts to secure funds from other sources, such as an urgent plea to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, those excoriating conditions were put to a public vote, an action which threw Europe into a deeper existential crisis.
Although the vote was carried decisively by voters against the cuts, the prime minister had little option but to reject its outcome then agree to a rescue deal with foreign lenders which proved to be even harsher.
Final Straw
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying the spotlight.”
When Varoufakis outlined a contingency plan that included establishing a secondary currency as well as distributing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for a deal that required complex and delicate management.”
He also claimed how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This account of history has provoked anger along with shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
