Within his newly released memoir, called Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on the turbulent era of Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, Tsipras selected the maverick academic Varoufakis as the finance minister mainly because of the latter's international reputation and Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more of a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader alleges how Varoufakis possessed his own agenda that included promoting Varoufakis's publications as well as experimenting with his theories using Greece rather than genuinely advocating its financial survival.
Tsipras wrote how the negotiations to stave off bankruptcy were “not only a method to secure a better deal for Greece. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself perilously on the brink of exiting the eurozone.
At stake lay both the country's future and those severe cutbacks required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Assisting Greece was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum Followed by Reversal
That summer, the harsh conditions were put to a public vote, a move which plunged the EU into further crisis of identity.
Although the referendum was won decisively by voters against the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal from creditors that turned out to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan involving establishing a secondary currency and issuing coupons to retirees, Tsipras knew it was game over questioning him: “Is this for real?”
Enduring Rebuke
In the book, Tsipras asserts how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive handling.”
He also claimed that Varoufakis's confrontational style left him more and more alone among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has kept a deafening silence regarding these claims.
