In a freshly published autobiography, named Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that turbulent period during Greece's financial crisis.
A Controversial Choice
According to Tsipras's version, Tsipras appointed the maverick academic Varoufakis to be the finance minister largely due to his international reputation and Varoufakis's highly compelling abilities as a communicator.
“He was, actually, more of a personality and less of an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief possessed a personal agenda which included promoting Varoufakis's books and testing out his game theories on the nation rather than truly fighting for its economic stability.
He noted that those discussions to stave off insolvency were “not just a way of achieving a better deal for Greece. They were an experiment, an historic chance to demonstrate the truth of his ideas.”
Critical Talks
During tense negotiations, the country came perilously on the brink of exiting the single currency area.
On the line was both Greece's future and the severe austerity measures required in return for rescue loans from foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Helping Greece was equivalent to tossing cash in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the punitive bailout terms were put to a public vote, a move that threw the EU into deeper crisis of identity.
Although the referendum was carried decisively by voters against austerity, the prime minister had little option to ignore the result then agree to a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the man who attracted media attention, who graced the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
He also claimed how Varoufakis's confrontational style made him more and more alone among peers, put Greece at risk, and helped hawks that were pushing for a Greek exit from the euro.
The account of events has provoked fury and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
