In a freshly published memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's financial crisis.
An Unconventional Choice
According to the ex-PM's account, he selected the maverick economist Varoufakis to be his finance minister mainly because of his global profile and his very persuasive skills when it came to public orator.
“He was, in reality, more of a personality and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader suggests how his finance chief had a personal motives that involved advancing Varoufakis's books as well as experimenting with his theories using the nation rather than truly advocating its financial survival.
Tsipras explained that the talks to avoid insolvency were “not just a method of achieving a better deal for Greece. They became a test, a monumental chance to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
During rollercoaster discussions, the country found itself dangerously close to exiting the single currency area.
At stake was both Greece's destiny and those punishing austerity policies demanded in return for rescue loans by foreign lenders.
Failed Options
Attempts to secure funds from other sources, such as a desperate appeal to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting Greece would be tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the harsh bailout terms were subjected to a popular referendum, a move which plunged Europe into deeper crisis of identity.
Even though the referendum was carried decisively by those who opposed austerity, Tsipras had little option to ignore the result and agree to a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving creating a parallel currency as well as issuing coupons to retirees, the leader knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, Tsipras concludes how Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive management.”
He also claimed that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hawks that were advocating Grexit.
The retelling of history has been met with anger along with stunned disbelief among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
