In a freshly published memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that chaotic era of Greece's debt drama.
An Unconventional Appointment
In Tsipras's account, he appointed the maverick academic Varoufakis as the finance minister largely due to his worldwide fame and Varoufakis's highly compelling skills as a communicator.
“In reality, he was, in reality, more like a personality and less of an economist,” wrote Tsipras.
Clashing Agendas
Tsipras claims how Varoufakis possessed a personal motives which involved promoting his publications as well as testing out his own theories using Greece instead of truly fighting for the country's financial survival.
He wrote that the discussions to avoid bankruptcy became “not just a way of achieving improved terms for Greece. They were a test, an historic chance to prove the truth of Varoufakis's theories.”
High-Stakes Talks
Amid volatile negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake lay both Greece's future but also those harsh austerity policies demanded in return for bailout funds from international creditors.
Unsuccessful Options
Efforts to secure financing elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the excoriating bailout terms were put to a public vote, an action which threw Europe into deeper crisis of identity.
Although the vote was won resoundingly by those against the cuts, the prime minister had little option but to ignore the result then negotiate a rescue deal from creditors which turned out to be more severe.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“He was the face of negotiation, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he relished his new role.”
After the minister outlined a contingency plan that included creating a secondary currency and issuing vouchers to pensioners, Tsipras knew that it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts how his former ally had proved himself to be “unsuitable for an agreement that required intricate and delicate handling.”
He further wrote that Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were pushing for Grexit.
This account of events has provoked anger along with stunned disbelief in some quarters, whereas the former minister has so far maintained a deafening silence regarding these claims.
