Within his freshly published autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he chose that unorthodox academic Varoufakis as the treasury head mainly due to his international reputation along with his very persuasive skills when it came to public orator.
“In reality, he was, truthfully, more like a star and less of an economist,” wrote Tsipras.
Clashing Agendas
Tsipras alleges how Varoufakis had his own agenda that involved advancing his books and experimenting with his game theories using Greece instead of genuinely fighting for the country's financial survival.
He explained how the discussions to stave off insolvency were “not just a way of achieving a better deal for the country. They became a test, a monumental opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, Greece came perilously close to exiting the single currency area.
At stake was not only the country's destiny but also those harsh austerity measures required in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing from other sources, such as an urgent plea to Russia to buy Greek government bonds, went unanswered.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, a move which threw the EU into further crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result then agree to a bailout package from creditors which proved to be more severe.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing coupons to pensioners, the leader knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, the author asserts that his former ally had proved himself “unfit for a deal demanding intricate and delicate management.”
He also claimed that Varoufakis's confrontational approach left him more and more alone among peers, endangered the country, while assisted hawks who were pushing for Grexit.
The retelling of events has provoked anger along with shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
