In a freshly published personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he revisits that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed the unorthodox academic Varoufakis to be the finance minister largely due to his worldwide fame and his highly compelling abilities when it came to communicator.
“He was, actually, more like a personality rather than an economist,” stated the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief had his own motives which involved advancing his books and experimenting with his game theories on the nation rather than truly fighting for its economic stability.
Tsipras explained how the negotiations to prevent insolvency became “not only a way to secure a better deal for Greece. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Talks
Amid tense discussions, Greece found itself dangerously on the brink of leaving the single currency area.
On the line lay both the country's future and the punishing cutbacks required in return for rescue loans by international creditors.
Failed Options
Attempts to find financing elsewhere, including a desperate appeal to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum Followed by U-Turn
In July 2015, those excoriating conditions were subjected to a popular referendum, an action that threw the EU into further crisis of identity.
Even though the referendum was won decisively by those who opposed the cuts, the prime minister had little option to ignore the result then agree to a rescue deal from creditors which proved to be more severe.
Final Straw
Tsipras revealed how he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications globally … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally had proved himself “unsuitable for an agreement that required complex and delicate handling.”
He also wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with shock among certain groups, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
