In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's economic turmoil.
A Controversial Choice
As per Tsipras's account, Tsipras selected the maverick economist Varoufakis to be his treasury head largely due to his international reputation and his highly compelling skills as a public orator.
“He was, truthfully, more of a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
Tsipras claims that his finance chief possessed his own agenda which included promoting Varoufakis's books and experimenting with his own game theories using Greece rather than truly fighting for its economic stability.
Tsipras wrote that the talks to stave off insolvency were “not just a method of achieving improved terms for the country. They became an experiment, a monumental chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
On the line was not only the country's future but also those harsh austerity measures required in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were put to a public vote, an action which plunged Europe into further crisis of identity.
Although the vote was won resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a rescue deal from creditors which turned out to be more severe.
Breaking Point
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When the minister outlined a contingency plan involving creating a secondary currency and distributing vouchers to pensioners, Tsipras knew it was game over and asked him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras asserts that his former ally demonstrated himself to be “unsuitable for an agreement that required complex and sensitive handling.”
He also claimed how his confrontational approach made him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating Grexit.
This retelling of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has maintained a deafening silence on the matter.
