In a newly released autobiography, called Ithaki, the ex- premier Alexis Tsipras does not hold back while he reflects on that chaotic period during Greece's debt drama.
A Controversial Appointment
In Tsipras's account, he selected the maverick economist Varoufakis as his finance minister largely because of the latter's worldwide fame along with his “extremely attractive” skills when it came to speaker.
“In reality, he was, actually, more like a personality rather than an economic expert,” stated Tsipras.
Clashing Agendas
Tsipras alleges how his finance chief possessed his own agenda that included promoting Varoufakis's books and experimenting with his economic models on the nation rather than truly advocating the country's financial survival.
He noted how those discussions to prevent insolvency were “not just a way to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the validity of his theories.”
Critical Negotiations
Amid tense negotiations, the country found itself perilously close to leaving the single currency area.
At stake lay both the country's destiny but also those severe cutbacks required in return for bailout funds from international creditors.
Unsuccessful Options
Attempts to find funds elsewhere, including a desperate appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive conditions were put to a popular referendum, an action which plunged the EU into a deeper existential crisis.
Even though the referendum was carried decisively by those against austerity, the prime minister had little option but to ignore the result then agree to a rescue deal with foreign lenders that proved to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan that included creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was the end questioning him: “Are you serious?”
Lasting Criticism
In the book, Tsipras asserts how Varoufakis demonstrated himself “unfit for an agreement that required complex and delicate handling.”
Tsipras also wrote that Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and assisted hawks that were pushing for Grexit.
The retelling of events has provoked anger and stunned disbelief in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
