Within his freshly published personal account, called Ithaki, the former leader Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's financial crisis.
A Controversial Appointment
In Tsipras's account, he appointed the maverick academic Varoufakis to be his treasury head primarily due to his international reputation along with Varoufakis's “extremely attractive” skills as a public orator.
“He was, in reality, more like a celebrity and less of an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras claims that Varoufakis possessed a personal agenda that included promoting his publications and testing out his game theories on the nation rather than genuinely advocating the country's financial survival.
He explained that those discussions to avoid bankruptcy were “not just a way to secure improved terms for Greece. They became a test, an historic chance to demonstrate the truth of his ideas.”
Critical Negotiations
Amid tense negotiations, the country found itself dangerously on the brink of leaving the single currency area.
At stake was not only Greece's future and the punishing austerity measures demanded in exchange for financial aid from international creditors.
Failed Options
Efforts to find financing from other sources, including a desperate appeal to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh bailout terms were subjected to a popular referendum, an action that plunged the EU into deeper existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as issuing coupons to pensioners, the leader said he realised it was game over questioning him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes how his former ally demonstrated himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating Grexit.
This account of history has provoked anger along with shock among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
