Within his freshly published personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines the turbulent period of Greece's debt drama.
An Unconventional Appointment
In Tsipras's recollections, he selected that unorthodox economist Varoufakis as his treasury head largely because of his international reputation and his “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more like a celebrity and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how Varoufakis had his own agenda that involved promoting Varoufakis's publications as well as testing out his theories using the nation rather than genuinely fighting for the country's financial survival.
Tsipras wrote that those talks to avoid insolvency became “not just a way of achieving improved terms for the country. They became an experiment, an historic chance to prove the validity of his theories.”
Critical Negotiations
During tense negotiations, Greece found itself perilously close to exiting the eurozone.
At stake lay both the country's future and those harsh cutbacks required in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, the excoriating bailout terms were put to a popular referendum, an action that plunged the EU into a further crisis of identity.
Although the vote was carried resoundingly by those against austerity, Tsipras had little option but to ignore the result then agree to a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and issuing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
He also wrote how Varoufakis's aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
