🔗 Share this article

In a newly released memoir, named Ithaki, the former premier Alexis Tsipras spares no criticism while he reflects on that turbulent era during Greece's financial crisis.

A Controversial Appointment

According to Tsipras's recollections, he selected that maverick academic Varoufakis as the treasury head mainly because of his international reputation along with Varoufakis's “extremely attractive” abilities as a communicator.

“In reality, he was, in reality, more like a personality rather than an economist,” recalled the 51-year-old.

Clashing Priorities

The former leader alleges that Varoufakis had his own motives that included advancing Varoufakis's books as well as experimenting with his game theories using the nation instead of genuinely advocating the country's financial survival.

He explained that the negotiations to prevent bankruptcy became “not just a way of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”

Critical Negotiations

During rollercoaster discussions, the country found itself perilously close to exiting the eurozone.

At stake was both Greece's destiny but also the punishing austerity policies demanded in return for bailout funds by foreign lenders.

Failed Alternatives

Efforts to secure financing from other sources, such as a desperate plea to Russia to purchase Greek bonds, fell on stony ground.

Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly informed Tsipras during their meeting.

Referendum and U-Turn

That summer, those punitive bailout terms were subjected to a public vote, an action which plunged the EU into deeper existential crisis.

Although the referendum was carried decisively by those against austerity, Tsipras had little option to reject its outcome then negotiate a rescue deal from creditors which proved to be even harsher.

Final Straw

Tsipras claimed how he started questioning his finance minister relatively soon.

“Varoufakis was the face of negotiation, the man who drew media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”

After the minister proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, Tsipras knew it was game over questioning him: “Is this for real?”

Lasting Criticism

Within the book, the author concludes that Varoufakis had proved himself to be “unsuitable for an agreement demanding intricate and sensitive management.”

He also wrote how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.

This account of history has been met with anger and shock among certain groups, while Varoufakis has maintained a deafening silence on the matter.