Within his recently unveiled memoir, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he revisits that turbulent era of Greece's financial crisis.
An Unconventional Appointment
As per the ex-PM's account, Tsipras selected that maverick economist Varoufakis as his treasury head mainly due to the latter's international reputation along with his “extremely attractive” abilities as a communicator.
“He was, actually, more of a personality rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader suggests how his finance chief had a personal motives which included promoting Varoufakis's publications as well as experimenting with his theories on the nation rather than truly advocating its financial survival.
He wrote how the negotiations to stave off bankruptcy became “not just a method of achieving a better deal for Greece. They were an experiment, a monumental opportunity to prove the truth of his ideas.”
High-Stakes Negotiations
Amid rollercoaster negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was both the country's destiny and those punishing cutbacks required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to find funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was won decisively by those who opposed austerity, the prime minister had little option to reject its outcome then negotiate a bailout package with foreign lenders that turned out to be tougher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After Varoufakis outlined a contingency plan involving creating a parallel currency and distributing vouchers to retirees, the leader said he realised that it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required complex and sensitive management.”
He also claimed how his confrontational style made him more and more alone among peers, endangered the country, and assisted hawks who were advocating Grexit.
This retelling of events has provoked anger along with stunned disbelief among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
