In a freshly published personal account, called Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on the turbulent era during Greece's financial crisis.
An Unconventional Choice
In Tsipras's version, he selected that maverick academic Varoufakis as the treasury head largely due to his international reputation along with Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Priorities
Tsipras alleges that Varoufakis had his own agenda which included advancing Varoufakis's publications and experimenting with his own game theories using the nation rather than genuinely advocating its financial survival.
Tsipras explained that those discussions to avoid bankruptcy became “not only a way of achieving improved terms for the country. They became an experiment, an historic opportunity to prove the truth of his ideas.”
Critical Negotiations
Amid volatile discussions, the country found itself perilously close to exiting the eurozone.
At stake was both the country's future but also the punishing cutbacks demanded in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to secure funds elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
In July 2015, the excoriating bailout terms were subjected to a public vote, an action which plunged the EU into deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced but to reject its outcome and agree to a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a contingency plan that included creating a secondary currency and distributing vouchers to pensioners, Tsipras knew it was the end and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for an agreement demanding complex and delicate management.”
Tsipras also wrote that his aggressive style made him more and more alone with colleagues, endangered the country, while helped hawks who were advocating a Greek exit from the euro.
The account of history has provoked anger and stunned disbelief among certain groups, whereas the former minister has so far maintained a deafening silence on the matter.
