In a recently unveiled memoir, titled Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that turbulent period during Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, he selected that maverick academic Varoufakis as the finance minister primarily because of his global profile and Varoufakis's “extremely attractive” abilities as a speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Priorities
The former leader claims that Varoufakis had his own agenda that included advancing Varoufakis's books and testing out his own theories using the nation instead of truly fighting for the country's economic stability.
He explained how the discussions to stave off insolvency became “not only a method to secure improved terms for Greece. They were an experiment, a monumental chance to demonstrate the validity of his theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece came dangerously on the brink of leaving the eurozone.
On the line lay not only Greece's future but also those harsh cutbacks required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to find financing from other sources, including an urgent appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, an action that plunged the EU into a further existential crisis.
Although the referendum was won decisively by those who opposed the cuts, Tsipras was forced but to ignore the result and agree to a bailout package from foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of negotiation, the man who drew publicity, who graced the covers of publications globally … it seemed he relished the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency and issuing coupons to retirees, the leader said he realised it was the end questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras further wrote how Varoufakis's confrontational approach made him more and more alone among peers, endangered the country, while helped hawks that were advocating Grexit.
This retelling of history has been met with fury and stunned disbelief in some quarters, while the former minister has so far maintained a deafening silence on the matter.
