Within his freshly published memoir, named Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, he appointed that maverick academic Varoufakis to be the treasury head largely due to the latter's global profile along with Varoufakis's very persuasive abilities when it came to speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras claims that Varoufakis had a personal motives that included promoting Varoufakis's books and testing out his own theories using Greece instead of genuinely fighting for the country's economic stability.
He wrote that those talks to prevent bankruptcy became “not just a method of achieving improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself perilously close to exiting the single currency area.
On the line lay both Greece's future but also those severe austerity measures demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, a move that plunged Europe into a further crisis of identity.
Although the referendum was won decisively by those who opposed austerity, Tsipras had little option to ignore the result then agree to a rescue deal with foreign lenders which turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the face of the talks, the man who drew media attention, who graced the front pages of publications the world over … it seemed he relished his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked him: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes how Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
He further wrote that his confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hawks that were advocating Grexit.
The retelling of history has been met with fury and shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
