In a newly released personal account, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits the turbulent era during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's recollections, he appointed that maverick economist Varoufakis as his finance minister largely because of his global profile and his “extremely attractive” skills as a speaker.
“He was, truthfully, more like a personality and less of an economist,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief had a personal agenda that included promoting Varoufakis's publications and experimenting with his game theories using the nation instead of truly fighting for the country's financial survival.
He wrote that the negotiations to stave off insolvency became “not only a way of achieving improved terms for the country. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the single currency area.
On the line lay not only the country's destiny and the severe cutbacks required in exchange for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent plea to the Kremlin to buy Greek bonds, fell on stony ground.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those harsh bailout terms were subjected to a public vote, a move that plunged the EU into a deeper crisis of identity.
Although the vote was carried decisively by those against austerity, the prime minister was forced to reject its outcome and negotiate a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the covers of publications the world over … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing coupons to retirees, the leader knew it was the end questioning him: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras concludes how his former ally had proved himself “unfit for a deal that required complex and delicate management.”
He further wrote that Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of events has been met with anger and shock among certain groups, whereas the former minister has so far maintained a conspicuous quiet on the matter.
