In a newly released memoir, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Choice
In the ex-PM's version, he chose the maverick economist Varoufakis to be the treasury head largely because of the latter's global profile along with Varoufakis's highly compelling skills when it came to public orator.
“He was, actually, more of a celebrity and less of an economic expert,” stated Tsipras.
Clashing Agendas
Tsipras alleges that Varoufakis had a personal motives which involved promoting his publications and testing out his own economic models using the nation instead of genuinely advocating the country's economic stability.
Tsipras wrote that the talks to prevent insolvency were “not just a method to secure a better deal for the country. They became an experiment, an historic chance to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
Amid volatile negotiations, Greece came dangerously close to leaving the single currency area.
At stake was not only Greece's future and the harsh austerity policies demanded in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those excoriating bailout terms were put to a popular referendum, an action which plunged the EU into a further crisis of identity.
Even though the vote was carried decisively by voters against the cuts, the prime minister had little option but to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
He also claimed that his confrontational style left him increasingly isolated with colleagues, put Greece at risk, and helped hawks who were advocating Grexit.
The retelling of history has provoked fury along with stunned disbelief among certain groups, whereas the former minister has maintained a conspicuous quiet regarding these claims.
