🔗 Share this article

In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras spares no criticism as he examines that turbulent period of Greece's debt drama.

An Unconventional Appointment

As per Tsipras's recollections, Tsipras selected the unorthodox economist Varoufakis as his finance minister mainly due to the latter's international reputation and his “extremely attractive” abilities as a speaker.

“He was, in reality, more of a star and less of an economic expert,” stated Tsipras.

Conflicting Priorities

Tsipras suggests that Varoufakis possessed a personal agenda which involved promoting Varoufakis's books as well as experimenting with his economic models using Greece rather than truly fighting for the country's economic stability.

He explained how the negotiations to avoid bankruptcy were “not only a method of achieving improved terms for the country. They became a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”

High-Stakes Negotiations

During rollercoaster discussions, Greece found itself perilously on the brink of exiting the eurozone.

On the line was both Greece's future and the severe cutbacks required in return for financial aid by foreign lenders.

Unsuccessful Options

Efforts to secure funds from other sources, including an urgent appeal to Russia to purchase Greek bonds, went unanswered.

Assisting the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.

Referendum and U-Turn

That summer, those punitive conditions were put to a popular referendum, a move which plunged Europe into deeper crisis of identity.

Although the referendum was won decisively by voters against the cuts, the prime minister had little option but to reject its outcome then agree to a bailout package with foreign lenders which turned out to be more severe.

Breaking Point

Tsipras claimed how he began to doubt Varoufakis quite early on.

“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying the spotlight.”

After Varoufakis outlined a contingency plan that included establishing a secondary currency and issuing coupons to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”

Lasting Rebuke

Within the memoir, the author concludes how Varoufakis had proved himself to be “unfit for an agreement that required complex and sensitive management.”

Tsipras further claimed how his aggressive style left him more and more alone with colleagues, put Greece at risk, while helped hardliners who were pushing for Grexit.

This retelling of history has provoked fury along with shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.