Within his freshly published personal account, named Ithaki, the ex- premier Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's account, he chose the maverick academic Varoufakis as his finance minister largely because of the latter's global profile and Varoufakis's “extremely attractive” abilities when it came to speaker.
“He was, truthfully, more like a personality rather than an economist,” wrote Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis possessed his own agenda which included advancing Varoufakis's books as well as experimenting with his own theories using the nation rather than genuinely fighting for the country's economic stability.
Tsipras wrote that the discussions to prevent insolvency were “not only a way of achieving a better deal for the country. They were a test, a monumental chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
During tense negotiations, Greece came perilously close to leaving the single currency area.
At stake lay not only Greece's future but also the punishing cutbacks required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find funds from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, a move that threw Europe into deeper existential crisis.
Although the referendum was won resoundingly by those against austerity, Tsipras had little option but to reject its outcome and agree to a rescue deal from foreign lenders which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted media attention, who graced the front pages of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency and distributing coupons to retirees, the leader said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras concludes how his former ally had proved himself “unsuitable for a deal demanding intricate and delicate handling.”
He further claimed how Varoufakis's confrontational approach made him more and more alone among peers, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, while Varoufakis has so far kept a conspicuous quiet on the matter.
