In a recently unveiled autobiography, named Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that chaotic era during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, he chose the unorthodox economist Varoufakis to be the finance minister primarily due to his global profile along with his “extremely attractive” abilities as a public orator.
“He was, in reality, more like a celebrity and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis possessed a personal agenda which included advancing his publications as well as experimenting with his economic models on the nation instead of truly fighting for the country's economic stability.
Tsipras noted how those talks to avoid insolvency were “not just a method to secure improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Talks
During rollercoaster negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake lay both Greece's destiny but also the harsh austerity measures demanded in exchange for bailout funds from international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including an urgent appeal to Russia to buy Greek bonds, went unanswered.
Assisting the indebted country was tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
In July 2015, the excoriating conditions were put to a public vote, an action that plunged the EU into a further existential crisis.
Although the vote was won decisively by those who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a bailout package with foreign lenders that turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational style left him increasingly isolated among peers, endangered the country, and helped hardliners who were advocating a Greek exit from the euro.
The account of events has provoked fury along with shock among certain groups, while the former minister has so far maintained a deafening silence regarding these claims.
