Within his newly released memoir, called Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that chaotic era during Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's version, Tsipras chose that unorthodox economist Varoufakis to be the finance minister primarily because of his international reputation and his highly compelling skills as a communicator.
“He was, truthfully, more of a personality rather than an economic expert,” stated the 51-year-old.
Conflicting Agendas
Tsipras claims how Varoufakis possessed his own motives which involved advancing his publications as well as testing out his own theories on Greece rather than genuinely advocating its financial survival.
Tsipras noted how the negotiations to prevent insolvency were “not only a method of achieving improved terms for the country. They became a test, a monumental chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster negotiations, the country came perilously close to leaving the single currency area.
At stake lay both the country's destiny but also those punishing cutbacks demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, including a desperate plea to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those punitive bailout terms were put to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option but to reject its outcome and negotiate a bailout package from creditors that proved to be more severe.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who drew publicity, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy that included creating a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, the author asserts that Varoufakis had proved himself “unsuitable for an agreement that required intricate and sensitive management.”
He also wrote that Varoufakis's aggressive style left him more and more alone among peers, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This account of history has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
