In a freshly published memoir, called Ithaki, the former leader Alexis Tsipras does not hold back while he revisits that turbulent period of Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's account, he chose the unorthodox economist Varoufakis to be his finance minister largely due to the latter's international reputation along with his very persuasive skills when it came to communicator.
“He was, truthfully, more like a star rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests how Varoufakis had a personal motives that included advancing his publications as well as experimenting with his game theories using Greece instead of truly fighting for its economic stability.
Tsipras noted that those negotiations to prevent insolvency were “not only a way of achieving a better deal for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's ideas.”
Critical Talks
During tense negotiations, the country came perilously close to leaving the eurozone.
At stake lay not only the country's destiny but also the harsh austerity policies required in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to secure funds from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move which threw Europe into a deeper crisis of identity.
Although the referendum was carried resoundingly by voters against austerity, Tsipras had little option to ignore the result then negotiate a bailout package with foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the face of the talks, the figure who attracted media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis proposed a backup strategy that included establishing a secondary currency as well as distributing coupons to pensioners, Tsipras knew that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
Within the memoir, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive handling.”
Tsipras further wrote that Varoufakis's confrontational style made him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating Grexit.
This account of history has provoked fury and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
