In a newly released autobiography, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, Tsipras chose that unorthodox economist Varoufakis as the treasury head largely because of the latter's international reputation and his “extremely attractive” abilities as a public orator.
“He was, truthfully, more like a personality and less of an economic expert,” wrote Tsipras.
Clashing Priorities
Tsipras suggests how his finance chief had a personal agenda that involved advancing Varoufakis's books as well as testing out his game theories using the nation instead of truly fighting for its economic stability.
He explained how those discussions to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was both Greece's future but also the punishing austerity policies required in return for financial aid by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash into the garbage, Putin reportedly informed Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, those harsh conditions were put to a public vote, a move which plunged the EU into further existential crisis.
Although the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with creditors which proved to be more severe.
Final Straw
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a backup strategy that included establishing a parallel currency as well as distributing coupons to retirees, the leader knew it was game over questioning him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for an agreement demanding intricate and delicate handling.”
He further claimed how his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
The account of events has provoked anger along with shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
