In a recently unveiled autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on that chaotic era of Greece's financial crisis.
An Unconventional Appointment
As per Tsipras's recollections, he selected the maverick economist Varoufakis to be the treasury head largely because of his international reputation and Varoufakis's very persuasive abilities when it came to speaker.
“He was, actually, more like a star and less of an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis possessed a personal motives which involved advancing Varoufakis's publications as well as testing out his own game theories on the nation instead of genuinely fighting for its financial survival.
Tsipras explained that the talks to prevent insolvency were “not only a way to secure improved terms for the country. They became a test, a monumental chance to prove the truth of his theories.”
Critical Talks
Amid rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
On the line lay both Greece's destiny but also those harsh austerity policies demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those harsh conditions were put to a popular referendum, an action that threw Europe into a further existential crisis.
Even though the vote was won resoundingly by voters against the cuts, the prime minister had little option but to ignore the result and agree to a bailout package with creditors which turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who graced the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that his former ally had proved himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also wrote that his confrontational style left him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This account of history has provoked fury along with shock among certain groups, while the former minister has so far maintained a deafening silence regarding these claims.
