In a recently unveiled personal account, called Ithaki, the former leader Alexis Tsipras does not hold back as he examines that chaotic period of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, he selected the maverick academic Varoufakis as the finance minister largely because of the latter's international reputation along with his highly compelling abilities as a speaker.
“He was, in reality, more like a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis possessed a personal agenda which involved promoting Varoufakis's books and testing out his game theories on Greece rather than truly fighting for the country's financial survival.
Tsipras explained how those discussions to prevent insolvency became “not just a method to secure a better deal for Greece. They became a test, an historic opportunity to prove the validity of Varoufakis's theories.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was not only the country's future but also the severe cutbacks required in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, including a desperate appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, Putin reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those excoriating bailout terms were subjected to a popular referendum, an action which threw Europe into further crisis of identity.
Although the referendum was carried resoundingly by those who opposed the cuts, the prime minister was forced but to ignore the result and negotiate a rescue deal with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Rebuke
Within the memoir, the author asserts how Varoufakis demonstrated himself “unfit for a deal demanding intricate and delicate management.”
He further wrote how Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for Grexit.
The account of history has provoked anger and shock among certain groups, whereas the former minister has kept a deafening silence on the matter.
