Within his newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines that chaotic period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis as the treasury head mainly due to his international reputation along with Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” stated Tsipras.
Clashing Priorities
Tsipras alleges how his finance chief had a personal agenda which included promoting Varoufakis's publications as well as experimenting with his economic models using Greece rather than truly advocating the country's economic stability.
Tsipras explained how those talks to stave off bankruptcy became “not only a way of achieving a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid tense discussions, Greece came perilously on the brink of leaving the single currency area.
On the line lay both the country's destiny and those punishing cutbacks demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result then negotiate a bailout package from creditors which proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, the leader said he realised that it was game over and asked him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal that required intricate and sensitive handling.”
Tsipras also claimed that his confrontational approach made him more and more alone among peers, put Greece at risk, and helped hawks that were pushing for Grexit.
The account of history has been met with fury along with stunned disbelief among certain groups, while the former minister has so far maintained a deafening silence on the matter.
