In a newly released personal account, called Ithaki, the former leader Tsipras spares no criticism while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's recollections, Tsipras appointed the unorthodox academic Varoufakis to be his treasury head primarily due to the latter's worldwide fame and Varoufakis's very persuasive abilities when it came to communicator.
“He was, truthfully, more of a star rather than an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests that Varoufakis possessed his own motives that included advancing his publications as well as experimenting with his game theories on the nation rather than genuinely fighting for the country's financial survival.
He wrote how the negotiations to stave off bankruptcy became “not just a way of achieving improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster negotiations, the country found itself dangerously on the brink of leaving the single currency area.
On the line was not only Greece's future and the harsh austerity measures demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum Followed by Reversal
In July 2015, those excoriating conditions were subjected to a popular referendum, an action that plunged Europe into a deeper crisis of identity.
Although the vote was carried decisively by those against the cuts, Tsipras had little option to ignore the result then agree to a bailout package with foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the figure who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
After the minister outlined a backup strategy that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the book, the author asserts how Varoufakis demonstrated himself “unsuitable for a deal demanding complex and sensitive management.”
He also claimed how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
The account of history has provoked fury and shock among certain groups, whereas Varoufakis has kept a deafening silence on the matter.
