In a newly released memoir, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic period during Greece's financial crisis.
An Unconventional Appointment
In Tsipras's version, he chose that maverick economist Varoufakis as the treasury head largely due to his international reputation and Varoufakis's “extremely attractive” skills when it came to communicator.
“In reality, he was, actually, more of a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief possessed his own motives which included advancing his books as well as experimenting with his own theories using Greece instead of truly fighting for its financial survival.
He wrote how the negotiations to prevent bankruptcy became “not just a method of achieving improved terms for the country. They became a test, an historic chance to prove the truth of his theories.”
High-Stakes Talks
Amid rollercoaster negotiations, Greece came perilously close to exiting the eurozone.
On the line was both Greece's destiny and the punishing cutbacks demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a public vote, a move that plunged Europe into a further crisis of identity.
Although the vote was carried resoundingly by those against the cuts, the prime minister was forced but to reject its outcome then negotiate a bailout package from creditors which turned out to be more severe.
Final Straw
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a secondary currency and issuing coupons to pensioners, the leader said he realised that it was game over questioning him: “Can you be serious?”
Lasting Criticism
In the book, the author asserts how Varoufakis demonstrated himself to be “unsuitable for a deal that required intricate and delicate handling.”
Tsipras further claimed that his confrontational approach left him more and more alone with colleagues, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of events has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.