Within his recently unveiled autobiography, named Ithaki, the former prime minister Alexis Tsipras spares no criticism as he revisits that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, he selected that unorthodox academic Varoufakis as his treasury head largely because of the latter's global profile and his highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a celebrity and less of an economist,” wrote Tsipras.
Conflicting Agendas
The former leader claims that his finance chief possessed his own motives that included promoting Varoufakis's books as well as experimenting with his economic models using Greece instead of truly fighting for the country's financial survival.
Tsipras noted how the discussions to prevent insolvency were “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Talks
Amid volatile discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay not only Greece's destiny but also the severe austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure financing from other sources, such as an urgent appeal to Russia to purchase Greek bonds, were rejected.
Helping Greece was equivalent to throwing money into the garbage, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those harsh conditions were put to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Although the referendum was won resoundingly by voters against the cuts, the prime minister had little option to ignore the result then negotiate a bailout package with creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the front pages of publications globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, the leader knew that it was the end questioning him: “Are you serious?”
Lasting Criticism
Within the memoir, the author asserts that Varoufakis had proved himself “unfit for an agreement demanding intricate and delicate handling.”
Tsipras also claimed how Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, and assisted hawks that were pushing for Grexit.
This account of history has been met with anger along with shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
