In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's debt drama.
A Controversial Choice
As per the ex-PM's version, he selected the maverick economist Varoufakis to be his treasury head mainly due to his worldwide fame and his “extremely attractive” skills when it came to speaker.
“He was, actually, more like a celebrity rather than an economist,” wrote the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis possessed a personal agenda which included promoting his books and testing out his economic models on the nation instead of truly advocating its financial survival.
Tsipras wrote how the talks to stave off bankruptcy were “not only a way to secure a better deal for the country. They became a test, a monumental chance to prove the validity of his theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, the country found itself dangerously close to leaving the single currency area.
At stake lay both Greece's destiny but also the severe austerity policies demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, including an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
In July 2015, those harsh conditions were subjected to a popular referendum, a move which threw Europe into a deeper crisis of identity.
Even though the vote was carried resoundingly by voters who opposed austerity, the prime minister had little option to ignore the result then agree to a rescue deal with creditors that turned out to be more severe.
Breaking Point
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of magazines the world over … it seemed he relished his new role.”
When Varoufakis outlined a backup strategy that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised it was game over and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author concludes how his former ally demonstrated himself “unfit for an agreement that required intricate and sensitive management.”
He further wrote that his confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for a Greek exit from the euro.
This account of events has provoked anger and shock among certain groups, while the former minister has so far maintained a deafening silence on the matter.
