In a recently unveiled personal account, titled Ithaki, the ex- premier Alexis Tsipras does not hold back as he reflects on that turbulent period of Greece's economic turmoil.
A Controversial Choice
According to Tsipras's account, Tsipras selected the maverick academic Varoufakis to be the treasury head mainly because of his international reputation and Varoufakis's “extremely attractive” skills when it came to public orator.
“He was, actually, more like a star rather than an economic expert,” wrote the 51-year-old.
Clashing Agendas
The former leader suggests that his finance chief possessed his own motives that involved advancing his publications and testing out his game theories using Greece instead of truly fighting for the country's financial survival.
He explained that those discussions to avoid insolvency became “not just a method to secure a better deal for Greece. They were a test, an historic opportunity to demonstrate the validity of his ideas.”
High-Stakes Talks
Amid volatile discussions, Greece found itself perilously close to leaving the single currency area.
On the line was both the country's future and the harsh austerity measures required in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find funds from other sources, including an urgent appeal to Russia to purchase Greek bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
In July 2015, the punitive conditions were put to a public vote, an action that threw the EU into a further existential crisis.
Even though the vote was carried resoundingly by those against austerity, the prime minister was forced but to reject its outcome and negotiate a bailout package with creditors that proved to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing coupons to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras further wrote that Varoufakis's aggressive style left him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with fury and shock among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
