In a freshly published autobiography, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic era of Greece's economic turmoil.
A Controversial Appointment
As per the ex-PM's account, he appointed the maverick economist Varoufakis as his finance minister largely due to the latter's worldwide fame along with his highly compelling skills when it came to communicator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges that Varoufakis possessed his own motives that involved promoting his books as well as testing out his own economic models on the nation instead of genuinely advocating its economic stability.
Tsipras noted how the talks to avoid bankruptcy were “not just a way of achieving improved terms for Greece. They were an experiment, an historic chance to demonstrate the validity of his ideas.”
High-Stakes Talks
Amid tense negotiations, the country came perilously on the brink of leaving the single currency area.
On the line was not only Greece's destiny and the severe cutbacks required in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to find funds from other sources, including a desperate plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a public vote, a move that threw the EU into deeper existential crisis.
Even though the vote was carried decisively by voters against the cuts, the prime minister was forced but to ignore the result then agree to a rescue deal from foreign lenders that turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis outlined a backup strategy that included creating a secondary currency as well as distributing coupons to retirees, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate management.”
Tsipras also wrote how Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
The retelling of events has been met with fury and shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
