Within his freshly published memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits that chaotic era during Greece's economic turmoil.
An Unconventional Appointment
According to Tsipras's version, he appointed that maverick academic Varoufakis as his treasury head primarily because of his worldwide fame and his “extremely attractive” skills as a public orator.
“He was, truthfully, more of a personality and less of an economist,” stated the 51-year-old.
Clashing Priorities
Tsipras alleges how Varoufakis had a personal agenda which included promoting Varoufakis's books and testing out his own game theories on the nation instead of truly advocating the country's financial survival.
Tsipras noted that the talks to stave off bankruptcy became “not just a method to secure a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
Amid volatile discussions, the country found itself perilously close to leaving the single currency area.
On the line was both Greece's future and the punishing austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and Reversal
That summer, those harsh conditions were subjected to a public vote, an action that threw the EU into a further crisis of identity.
Even though the referendum was carried decisively by voters who opposed austerity, the prime minister had little option to ignore the result then agree to a bailout package with foreign lenders which proved to be tougher.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who drew media attention, who appeared on the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for a deal that required complex and sensitive management.”
He also claimed how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has been met with fury and stunned disbelief among certain groups, while the former minister has maintained a deafening silence regarding these claims.
