Within his newly released autobiography, named Ithaki, the former leader Alexis Tsipras spares no criticism as he examines that turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's version, he appointed the unorthodox academic Varoufakis as his treasury head mainly due to his global profile and his very persuasive skills when it came to speaker.
“He was, in reality, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Agendas
Tsipras alleges that his finance chief had a personal motives that included advancing his books as well as testing out his economic models on the nation instead of truly advocating its financial survival.
He explained how those talks to avoid bankruptcy were “not only a method of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's theories.”
Critical Negotiations
Amid tense discussions, the country found itself perilously on the brink of leaving the eurozone.
At stake was both Greece's future but also the severe austerity policies demanded in exchange for bailout funds from international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting Greece would be equivalent to throwing money into the garbage, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, those punitive bailout terms were put to a public vote, a move which threw the EU into further existential crisis.
Even though the referendum was won resoundingly by those against the cuts, Tsipras had little option but to ignore the result and agree to a rescue deal with creditors which turned out to be more severe.
Final Straw
The ex-PM claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
When Varoufakis proposed a backup strategy that included creating a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, the author concludes how Varoufakis demonstrated himself “unsuitable for a deal that required intricate and sensitive handling.”
Tsipras further wrote that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
The retelling of events has been met with fury and shock among certain groups, whereas Varoufakis has kept a conspicuous quiet on the matter.
