In a recently unveiled autobiography, called Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that chaotic period of Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's account, he selected that unorthodox academic Varoufakis as his treasury head primarily because of his global profile and his very persuasive skills when it came to speaker.
“In reality, he was, truthfully, more like a celebrity rather than an economist,” stated Tsipras.
Clashing Agendas
Tsipras claims that Varoufakis had his own agenda that included promoting his books as well as testing out his game theories on Greece rather than truly fighting for the country's financial survival.
He noted that those negotiations to avoid bankruptcy became “not only a method to secure a better deal for the country. They became a test, an historic chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
At stake lay both the country's destiny and the severe cutbacks required in exchange for financial aid by international creditors.
Failed Options
Efforts to secure financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were put to a public vote, an action that plunged Europe into a deeper crisis of identity.
Although the vote was won decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be tougher.
Breaking Point
Tsipras revealed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of magazines globally … it seemed he relished the spotlight.”
After the minister outlined a contingency plan involving creating a parallel currency as well as issuing vouchers to retirees, the leader knew it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author asserts that his former ally had proved himself to be “unfit for an agreement demanding complex and delicate handling.”
Tsipras further wrote that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were advocating Grexit.
The retelling of events has been met with anger and stunned disbelief in some quarters, while Varoufakis has maintained a conspicuous quiet regarding these claims.
