Within his freshly published memoir, called Ithaki, the former leader Alexis Tsipras spares no criticism as he revisits that turbulent period during Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's account, Tsipras chose the unorthodox economist Varoufakis as his finance minister largely because of his international reputation and his very persuasive abilities when it came to communicator.
“In reality, he was, actually, more of a personality rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges how his finance chief possessed his own motives which involved promoting his publications as well as testing out his own economic models on the nation rather than genuinely fighting for its financial survival.
Tsipras explained how the talks to stave off insolvency were “not just a method to secure a better deal for Greece. They became a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During tense negotiations, the country came perilously on the brink of exiting the eurozone.
On the line was both the country's future but also those harsh cutbacks demanded in return for rescue loans by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, a move which threw Europe into further existential crisis.
Even though the referendum was won resoundingly by those against austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who graced the covers of magazines globally … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency and distributing coupons to retirees, Tsipras knew that it was the end and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, and helped hardliners that were pushing for Grexit.
This retelling of history has been met with fury along with shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
