In a recently unveiled autobiography, named Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, Tsipras chose the unorthodox academic Varoufakis as his treasury head largely because of the latter's global profile along with Varoufakis's highly compelling abilities when it came to communicator.
“He was, in reality, more of a personality rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis had his own agenda which involved advancing Varoufakis's books as well as experimenting with his game theories using Greece instead of truly advocating the country's economic stability.
He noted that those discussions to avoid insolvency were “not just a method to secure a better deal for the country. They became an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece came dangerously close to leaving the single currency area.
On the line was not only the country's destiny and those harsh cutbacks required in exchange for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Although the vote was carried resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome then agree to a bailout package with creditors that proved to be more severe.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who drew publicity, who graced the covers of publications the world over … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency and issuing vouchers to pensioners, Tsipras knew that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement demanding complex and delicate management.”
He also wrote how Varoufakis's confrontational approach left him more and more alone among peers, endangered the country, while assisted hardliners that were pushing for Grexit.
This retelling of history has been met with anger and shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
