Within his newly released personal account, called Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on that chaotic era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's account, he appointed the maverick academic Varoufakis to be his finance minister primarily because of the latter's global profile along with Varoufakis's highly compelling skills when it came to communicator.
“In reality, he was, actually, more of a personality and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims that Varoufakis had a personal agenda which included advancing his publications as well as testing out his economic models on Greece instead of truly fighting for the country's economic stability.
Tsipras explained that the talks to prevent bankruptcy were “not just a method to secure improved terms for the country. They were an experiment, an historic chance to prove the validity of his theories.”
High-Stakes Talks
Amid volatile discussions, the country came dangerously on the brink of leaving the single currency area.
On the line lay both the country's future and the punishing austerity measures required in return for financial aid by international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move which plunged the EU into a deeper existential crisis.
Although the referendum was carried decisively by voters who opposed austerity, the prime minister was forced but to reject its outcome and negotiate a rescue deal from creditors that proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy that included establishing a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end and asked Varoufakis: “Are you serious?”
Enduring Criticism
Within the book, the author asserts that his former ally had proved himself “unfit for a deal demanding complex and delicate handling.”
He further claimed how Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and helped hardliners who were advocating Grexit.
This retelling of events has provoked anger and shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
