In a newly released personal account, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, he chose that maverick academic Varoufakis as the treasury head primarily due to the latter's global profile along with his very persuasive abilities when it came to public orator.
“He was, truthfully, more like a celebrity rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader claims that his finance chief possessed his own motives that involved promoting Varoufakis's books and experimenting with his economic models using the nation rather than genuinely advocating the country's financial survival.
Tsipras noted that those talks to prevent insolvency became “not just a method to secure improved terms for the country. They became a test, a monumental chance to prove the truth of his ideas.”
High-Stakes Talks
During tense negotiations, Greece came dangerously on the brink of exiting the eurozone.
On the line was both Greece's future and those severe austerity measures demanded in exchange for financial aid by international creditors.
Unsuccessful Options
Efforts to find financing elsewhere, including an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those excoriating bailout terms were subjected to a popular referendum, a move that plunged Europe into a further existential crisis.
Although the referendum was carried decisively by those against austerity, the prime minister had little option to ignore the result then negotiate a rescue deal with creditors which proved to be more severe.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of publications globally … he gave the impression he relished his new role.”
After the minister outlined a backup strategy involving establishing a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was game over questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the memoir, Tsipras concludes how Varoufakis had proved himself to be “unsuitable for an agreement that required intricate and delicate management.”
He further wrote that Varoufakis's aggressive approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were advocating a Greek exit from the euro.
The retelling of events has provoked fury along with stunned disbelief among certain groups, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
