In a freshly published personal account, named Ithaki, the former prime minister Alexis Tsipras does not hold back while he reflects on that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, Tsipras selected the maverick academic Varoufakis to be the finance minister primarily due to the latter's worldwide fame and Varoufakis's highly compelling skills as a communicator.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” wrote Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had his own motives which involved advancing Varoufakis's publications and testing out his theories on the nation instead of genuinely advocating its financial survival.
He wrote that those negotiations to avoid insolvency became “not only a method to secure a better deal for the country. They became an experiment, a monumental chance to demonstrate the validity of his economic theories.”
High-Stakes Talks
During rollercoaster negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake was both Greece's future but also those harsh cutbacks demanded in exchange for rescue loans by international creditors.
Failed Alternatives
Attempts to find funds from other sources, such as a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, those harsh bailout terms were subjected to a public vote, an action that plunged the EU into further crisis of identity.
Even though the vote was carried resoundingly by voters against the cuts, the prime minister had little option but to reject its outcome then agree to a rescue deal from foreign lenders which proved to be more severe.
Final Straw
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of magazines the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included creating a secondary currency as well as issuing vouchers to retirees, the leader said he realised it was the end and asked him: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes how his former ally demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
He also wrote that Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
