Within his recently unveiled personal account, called Ithaki, the ex- premier Alexis Tsipras spares no criticism as he reflects on that chaotic period during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, he selected the maverick economist Varoufakis to be his finance minister mainly because of the latter's global profile along with Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Priorities
Tsipras suggests that Varoufakis had a personal agenda that involved advancing his books and experimenting with his economic models using the nation rather than genuinely fighting for its financial survival.
He explained how the talks to stave off bankruptcy were “not just a way of achieving improved terms for the country. They became an experiment, a monumental chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, the country found itself perilously close to leaving the single currency area.
At stake lay not only the country's destiny and those severe cutbacks demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find financing from other sources, such as an urgent appeal to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly informed Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those harsh conditions were subjected to a popular referendum, an action which plunged Europe into a further existential crisis.
Although the referendum was carried decisively by those who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal from creditors that turned out to be more severe.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who drew publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
After the minister outlined a backup strategy that included creating a parallel currency as well as issuing coupons to pensioners, the leader said he realised it was game over and asked him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras concludes that Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive management.”
Tsipras also wrote that Varoufakis's confrontational approach left him more and more alone among peers, put Greece at risk, and assisted hawks who were advocating Grexit.
This retelling 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.
