In a freshly published memoir, called Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's debt drama.
A Controversial Choice
As per the ex-PM's recollections, Tsipras chose the unorthodox academic Varoufakis to be his treasury head primarily due to the latter's global profile and his highly compelling skills as a public orator.
“He was, in reality, more of a star and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
The former leader alleges that his finance chief possessed his own motives that included advancing Varoufakis's books and testing out his theories on Greece rather than genuinely advocating the country's financial survival.
He wrote that the discussions to stave off bankruptcy were “not just a way to secure a better deal for the country. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
Critical Negotiations
During volatile negotiations, the country came perilously close to leaving the single currency area.
On the line lay both Greece's future but also the harsh austerity measures demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent plea to Russia to buy Greek bonds, were rejected.
Assisting Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that threw Europe into further existential crisis.
Although the vote was won resoundingly by those who opposed austerity, Tsipras was forced to reject its outcome and negotiate a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to pensioners, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras asserts that his former ally had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras further claimed that his aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hardliners who were advocating Grexit.
The account of history has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence on the matter.
