Within his newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, Tsipras appointed that maverick academic Varoufakis to be his treasury head largely due to the latter's international reputation and Varoufakis's “extremely attractive” abilities as a speaker.
“He was, actually, more of a celebrity and less of an economist,” recalled the 51-year-old.
Clashing Agendas
The former leader alleges how Varoufakis had a personal motives that included advancing Varoufakis's books and experimenting with his own theories using Greece rather than truly fighting for the country's financial survival.
He noted how the discussions to avoid insolvency were “not only a way to secure a better deal for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
Critical Talks
Amid volatile negotiations, the country came dangerously close to exiting the eurozone.
On the line lay not only the country's future and the punishing austerity policies required in exchange for financial aid from foreign lenders.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the harsh bailout terms were subjected to a popular referendum, a move that plunged Europe into a deeper crisis of identity.
Even though the referendum was won decisively by those against austerity, the prime minister was forced to ignore the result and negotiate a bailout package from creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, the leader knew that it was game over and asked him: “Are you serious?”
Enduring Criticism
In the memoir, the author concludes how Varoufakis had proved himself to be “unfit for an agreement that required intricate and delicate management.”
He further claimed that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and helped hardliners that were pushing for a Greek exit from the euro.
The account of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
