In a freshly published personal account, called Ithaki, the ex- premier Alexis Tsipras spares no criticism while he reflects on the chaotic period during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's recollections, he chose that maverick economist Varoufakis as his finance minister largely because of the latter's worldwide fame along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, in reality, more like a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis possessed his own motives that included promoting Varoufakis's publications as well as testing out his economic models on Greece instead of genuinely fighting for the country's economic stability.
He explained how the discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense discussions, Greece came perilously close to leaving the eurozone.
At stake lay both Greece's destiny but also the severe austerity policies demanded in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those punitive conditions were put to a popular referendum, an action which plunged the EU into further existential crisis.
Although the vote was won decisively by voters against austerity, Tsipras had little option but to reject its outcome and negotiate a bailout package with foreign lenders that turned out to be tougher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who appeared on the front pages of magazines globally … it seemed he was enjoying his new role.”
After the minister outlined a backup strategy involving establishing a parallel currency and distributing coupons to retirees, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement demanding complex and delicate management.”
Tsipras also wrote how Varoufakis's aggressive style left him increasingly isolated with colleagues, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
The account of history has been met with fury and stunned disbelief in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
