In a freshly published memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's account, Tsipras appointed that maverick economist Varoufakis as the finance minister largely because of the latter's global profile and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more of a personality rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras claims how his finance chief possessed a personal agenda which included advancing his publications as well as experimenting with his own game theories on Greece rather than genuinely fighting for its financial survival.
He wrote how those discussions to avoid insolvency became “not just a method to secure a better deal for Greece. They were an experiment, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid volatile negotiations, the country came perilously close to leaving the single currency area.
At stake was both the country's future but also the punishing austerity measures required in exchange for financial aid from international creditors.
Failed Options
Efforts to find financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras in Moscow.
Referendum and Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, a move that threw Europe into deeper crisis of identity.
Although the referendum was carried decisively by those against austerity, the prime minister had little option to ignore the result and negotiate a rescue deal with creditors which proved to be more severe.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the covers of magazines globally … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to pensioners, the leader said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and delicate handling.”
Tsipras also claimed that Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, while assisted hawks that were advocating a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief among certain groups, whereas the former minister has maintained a deafening silence on the matter.
