In a recently unveiled personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches while he revisits that chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis as his finance minister largely because of the latter's international reputation and Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests how Varoufakis had his own motives that involved promoting his publications as well as testing out his game theories on Greece rather than genuinely advocating the country's economic stability.
Tsipras wrote that those discussions to avoid insolvency became “not only a way of achieving improved terms for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
Critical Negotiations
During tense discussions, Greece came dangerously close to leaving the single currency area.
At stake was both the country's future and those harsh austerity measures demanded in return for bailout funds from international creditors.
Failed Options
Attempts to secure financing elsewhere, such as an urgent plea to Russia to purchase Greek bonds, were rejected.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, an action which plunged Europe into deeper crisis of identity.
Although the vote was carried resoundingly by those who opposed austerity, Tsipras had little option but to reject its outcome and agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who appeared on the front pages of publications the world over … it seemed he relished his new role.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised it was game over and asked him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate handling.”
He also wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with anger and shock among certain groups, whereas the former minister has so far kept a deafening silence on the matter.
