In a freshly published memoir, named Ithaki, the former leader Alexis Tsipras does not hold back as he reflects on that turbulent period during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he selected that maverick academic Varoufakis to be the finance minister largely due to the latter's worldwide fame and his highly compelling skills as a speaker.
“He was, actually, more of a personality and less of an economist,” stated the 51-year-old.
Conflicting Priorities
Tsipras alleges that his finance chief had a personal agenda which involved promoting his books as well as experimenting with his own game theories on Greece rather than genuinely fighting for its financial survival.
Tsipras wrote how the negotiations to prevent bankruptcy were “not only a way of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself dangerously on the brink of leaving the eurozone.
At stake was not only Greece's destiny and the severe austerity measures demanded in return for rescue loans from international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move which threw Europe into further existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a rescue deal with creditors that proved to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
After the minister proposed a contingency plan that included establishing a secondary currency and distributing vouchers to retirees, the leader knew it was game over questioning him: “Can you be serious?”
Enduring Criticism
Within the book, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate handling.”
Tsipras also claimed that his confrontational style made him more and more alone among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
The account of history has been met with fury and shock in some quarters, while the former minister has maintained a deafening silence on the matter.
