🔗 Share this article

Within his recently unveiled memoir, named Ithaki, the former prime minister Tsipras does not hold back while he reflects on that chaotic era during Greece's economic turmoil.

A Controversial Choice

As per the ex-PM's recollections, he chose the unorthodox economist Varoufakis as his treasury head mainly due to the latter's international reputation along with Varoufakis's “extremely attractive” skills as a public orator.

“In reality, he was, truthfully, more like a celebrity and less of an economic expert,” wrote the 51-year-old.

Conflicting Priorities

The former leader claims that Varoufakis possessed his own motives which included promoting his publications and testing out his economic models using Greece instead of genuinely advocating the country's economic stability.

Tsipras wrote that the talks to avoid insolvency were “not only a method of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”

High-Stakes Talks

Amid volatile discussions, the country found itself perilously on the brink of leaving the single currency area.

On the line lay not only Greece's destiny but also those severe austerity measures required in exchange for rescue loans from foreign lenders.

Unsuccessful Options

Efforts to secure financing from other sources, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.

Helping the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart in Moscow.

Public Vote Followed by U-Turn

That summer, those punitive conditions were put to a popular referendum, an action that threw the EU into a further crisis of identity.

Although the referendum was won decisively by voters against the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be even harsher.

Final Straw

Tsipras revealed that he began to doubt his finance minister quite early on.

“He was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”

After Varoufakis proposed a contingency plan involving creating a secondary currency as well as distributing vouchers to pensioners, the leader said he realised it was the end questioning Varoufakis: “Is this for real?”

Enduring Rebuke

Within the book, Tsipras concludes how Varoufakis demonstrated himself “unsuitable for a deal that required intricate and delicate handling.”

He also claimed that Varoufakis's confrontational style left him more and more alone with colleagues, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.

This retelling of history has been met with fury along with shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.