In a recently unveiled autobiography, titled Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on the turbulent era during Greece's economic turmoil.
An Unconventional Appointment
In Tsipras's account, Tsipras appointed the maverick economist Varoufakis as the finance minister mainly due to his international reputation along with Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, actually, more of a star and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader suggests how Varoufakis had a personal agenda which involved promoting his books and testing out his game theories using the nation rather than genuinely advocating its financial survival.
He wrote that those negotiations to avoid insolvency became “not just a method of achieving improved terms for Greece. They became an experiment, an historic chance to prove the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future but also the severe austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, including a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and Reversal
In July 2015, the punitive bailout terms were put to a popular referendum, a move that plunged Europe into deeper crisis of identity.
Although the referendum was carried decisively by voters who opposed the cuts, the prime minister had little option to reject its outcome then agree to a bailout package from foreign lenders which proved to be tougher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the figure who drew publicity, who graced the front pages of magazines globally … it seemed he relished his new role.”
After the minister proposed a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Criticism
Within the book, Tsipras concludes that Varoufakis demonstrated himself to be “unsuitable for a deal demanding intricate and sensitive management.”
He also claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with anger and shock among certain groups, while the former minister has maintained a deafening silence regarding these claims.