Within his freshly published personal account, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on that chaotic period of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's version, he selected that maverick economist Varoufakis as the finance minister mainly because of the latter's international reputation and Varoufakis's very persuasive abilities as a communicator.
“He was, actually, more like a celebrity and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims that his finance chief possessed his own agenda that included promoting Varoufakis's publications as well as testing out his own theories on Greece rather than truly advocating the country's financial survival.
He wrote that those talks to stave off insolvency became “not only a method of achieving improved terms for Greece. They were an experiment, a monumental chance to prove the truth of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, Greece found itself dangerously close to leaving the single currency area.
On the line was both Greece's destiny but also those punishing austerity policies demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were put to a popular referendum, an action that plunged Europe into a further crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive management.”
He also wrote how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating Grexit.
The account of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
