In a freshly published autobiography, named Ithaki, the ex- leader Alexis Tsipras does not hold back as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's recollections, he appointed the unorthodox economist Varoufakis to be the treasury head primarily due to the latter's global profile and his highly compelling skills when it came to public orator.
“He was, truthfully, more of a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges that Varoufakis had a personal agenda which involved promoting Varoufakis's books and experimenting with his game theories using Greece rather than truly advocating the country's financial survival.
Tsipras noted how the talks to stave off insolvency were “not just a way to secure improved terms for Greece. They were a test, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Talks
During volatile negotiations, the country came dangerously close to leaving the eurozone.
At stake was both Greece's destiny but also those harsh austerity policies demanded in return for rescue loans from foreign lenders.
Failed Alternatives
Efforts to find financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money into the garbage, Putin reportedly informed his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, those harsh bailout terms were put to a public vote, a move which plunged Europe into deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, the prime minister had little option but to ignore the result and agree to a rescue deal with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the figure who attracted publicity, who graced the covers of magazines the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan involving establishing a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for a deal demanding intricate and delicate handling.”
He also claimed that Varoufakis's aggressive approach left him more and more alone with colleagues, endangered the country, while assisted hawks that were pushing for a Greek exit from the euro.
This account of events has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has kept a deafening silence regarding these claims.
