In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras spares no criticism while he revisits that turbulent period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected that maverick academic Varoufakis as the treasury head largely due to his worldwide fame and his “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more of a personality rather than an economist,” wrote Tsipras.
Clashing Agendas
Tsipras claims how Varoufakis possessed a personal motives which included promoting his books and experimenting with his game theories using Greece instead of genuinely advocating the country's economic stability.
Tsipras explained that the negotiations to avoid bankruptcy were “not just a way of achieving improved terms for the country. They were a test, a monumental chance to demonstrate the validity of his ideas.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to leaving the eurozone.
On the line lay both the country's destiny but also the harsh austerity policies required in exchange for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.
Public Vote and U-Turn
In July 2015, the excoriating conditions were put to a popular referendum, an action that plunged the EU into a deeper existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option to reject its outcome and negotiate a rescue deal with creditors that proved to be more severe.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy that included creating a parallel currency as well as distributing coupons to pensioners, Tsipras said he realised it was game over and asked him: “Are you serious?”
Lasting Criticism
In the memoir, the author concludes how Varoufakis had proved himself “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras also claimed how his confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The account of history has been met with anger and shock among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
