In a newly released memoir, named Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on the turbulent period of Greece's economic turmoil.
A Controversial Choice
In Tsipras's recollections, he selected the unorthodox economist Varoufakis as the finance minister mainly because of his global profile along with Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” recalled Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal agenda that involved promoting his publications and experimenting with his own game theories using the nation instead of truly advocating its economic stability.
Tsipras wrote that the negotiations to stave off insolvency were “not just a method of achieving a better deal for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
During volatile negotiations, the country found itself perilously on the brink of leaving the single currency area.
On the line was both Greece's destiny but also the punishing austerity policies required in return for financial aid by international creditors.
Failed Options
Attempts to secure funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece was tantamount to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum and U-Turn
That summer, the punitive conditions were subjected to a popular referendum, an action that plunged Europe into a further crisis of identity.
Even though the referendum was won decisively by those against the cuts, the prime minister had little option to reject its outcome and negotiate a bailout package from creditors which proved to be tougher.
Breaking Point
The ex-PM claimed that he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who graced the front pages of magazines globally … it seemed he relished his new role.”
After the minister proposed a contingency plan involving creating a parallel currency and distributing vouchers to retirees, the leader knew that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, the author concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
This retelling of events has been met with fury and stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
