In a freshly published memoir, titled Ithaki, the former leader Alexis Tsipras spares no criticism as he reflects on that turbulent era of Greece's economic turmoil.
An Unconventional Choice
According to Tsipras's account, Tsipras chose the unorthodox economist Varoufakis to be the finance minister primarily due to his international reputation and his very persuasive skills as a speaker.
“He was, in reality, more of a celebrity rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader claims that Varoufakis possessed a personal agenda that included promoting his publications as well as testing out his theories on Greece instead of genuinely fighting for its financial survival.
Tsipras wrote how the discussions to avoid bankruptcy were “not only a method to secure a better deal for Greece. They became an experiment, an historic chance to demonstrate the validity of his theories.”
High-Stakes Talks
During tense negotiations, Greece found itself perilously on the brink of leaving the single currency area.
At stake lay not only Greece's future and those punishing austerity measures required in return for bailout funds by international creditors.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a public vote, an action which threw the EU into a deeper existential crisis.
Although the referendum was won decisively by those against austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be tougher.
Final Straw
Tsipras claimed how he began to doubt his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the front pages of magazines the world over … it seemed he was enjoying his new role.”
When the minister proposed a contingency plan that included establishing a secondary currency and distributing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes how Varoufakis had proved himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
The account of events has been met with anger along with stunned disbelief among certain groups, while the former minister has maintained a conspicuous quiet regarding these claims.
