In a newly released personal account, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he revisits that chaotic era during Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's recollections, he appointed that maverick academic Varoufakis to be his treasury head primarily because of the latter's international reputation and Varoufakis's highly compelling skills as a speaker.
“He was, in reality, more of a star and less of an economist,” recalled Tsipras.
Conflicting Agendas
The former leader alleges that Varoufakis had a personal motives which involved promoting his publications and testing out his economic models using Greece instead of genuinely fighting for the country's financial survival.
Tsipras noted how the talks to avoid insolvency became “not just a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile negotiations, Greece found itself perilously close to exiting the eurozone.
At stake was both Greece's future but also those punishing austerity policies required in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as a desperate plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move which threw the EU into further existential crisis.
Although the vote was carried decisively by those against austerity, Tsipras was forced but to ignore the result then negotiate a rescue deal with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a secondary currency and issuing vouchers to pensioners, the leader said he realised it was game over and asked Varoufakis: “Can you be serious?”
Enduring Rebuke
Within the book, the author concludes how Varoufakis demonstrated himself to be “unfit for a deal that required complex and delicate management.”
Tsipras also wrote that Varoufakis's confrontational style made him increasingly isolated among peers, endangered the country, and helped hawks that were pushing for Grexit.
This account of history has been met with fury and shock among certain groups, whereas the former minister has kept a deafening silence on the matter.
