In a newly released autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Appointment
In Tsipras's recollections, Tsipras chose that unorthodox economist Varoufakis as the finance minister largely due to his international reputation and Varoufakis's very persuasive skills when it came to public orator.
“He was, actually, more of a star and less of an economist,” recalled Tsipras.
Clashing Priorities
The former leader alleges how his finance chief possessed his own agenda which involved promoting his publications and testing out his game theories on Greece instead of genuinely fighting for the country's financial survival.
He noted how those negotiations to prevent insolvency were “not only a way of achieving improved terms for the country. They were a test, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, the country found itself perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny but also the harsh cutbacks demanded in return for bailout funds from foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, such as a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, those harsh conditions were put to a popular referendum, a move which threw the EU into further crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister had little option but to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be tougher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew media attention, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
When the minister outlined a contingency plan that included establishing a secondary currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unsuitable for an agreement that required intricate and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, while assisted hawks that were pushing for Grexit.
The account of events has been met with anger and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
