In a recently unveiled personal account, named Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's recollections, Tsipras appointed the maverick academic Varoufakis as the treasury head mainly due to the latter's international reputation along with Varoufakis's highly compelling abilities when it came to communicator.
“He was, actually, more like a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras alleges how Varoufakis had a personal motives which involved advancing his publications and experimenting with his own theories on Greece instead of genuinely fighting for its economic stability.
He explained that those negotiations to prevent insolvency were “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid volatile negotiations, Greece came perilously close to exiting the single currency area.
At stake lay both Greece's destiny and the harsh austerity measures required in exchange for rescue loans by international creditors.
Failed Alternatives
Attempts to find funds elsewhere, such as a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action which threw the EU into a deeper existential crisis.
Although the referendum was won resoundingly by voters who opposed austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal from foreign lenders that proved to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of publications globally … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, Tsipras concludes how his former ally had proved himself to be “unfit for an agreement that required complex and delicate management.”
He also claimed that Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
This account of events has been met with fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
