In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras spares no criticism as he examines that turbulent period of Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, he chose the unorthodox academic Varoufakis to be the treasury head primarily due to the latter's international reputation along with his “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more like a star rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims how his finance chief had a personal agenda which included promoting his publications as well as testing out his game theories on Greece rather than truly advocating the country's financial survival.
Tsipras noted that those talks to prevent bankruptcy were “not just a method to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
During volatile negotiations, Greece came perilously close to exiting the single currency area.
At stake lay not only the country's destiny but also those punishing cutbacks required in exchange for financial aid by international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece would be tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those harsh conditions were subjected to a popular referendum, an action that plunged the EU into further crisis of identity.
Even though the vote was won resoundingly by those who opposed the cuts, Tsipras was forced to ignore the result and negotiate a bailout package from foreign lenders which proved to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who drew publicity, who appeared on the front pages of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a contingency plan that included establishing a parallel currency and distributing vouchers to retirees, the leader said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
He further wrote how his aggressive approach left him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The retelling of history has provoked fury and stunned disbelief among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
