In a freshly published personal account, called Ithaki, the former prime minister Alexis Tsipras spares no criticism as he revisits that chaotic era of Greece's economic turmoil.
An Unconventional Choice
In Tsipras's recollections, he appointed the unorthodox economist Varoufakis as his treasury head mainly because of the latter's international reputation and Varoufakis's very persuasive skills when it came to speaker.
“He was, actually, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras suggests that Varoufakis possessed his own motives that involved advancing Varoufakis's publications and experimenting with his own game theories on the nation rather than genuinely advocating its economic stability.
He explained how those talks to stave off insolvency were “not only a method of achieving improved terms for Greece. They became an experiment, an historic chance to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
During tense negotiations, the country came dangerously on the brink of leaving the eurozone.
On the line was both the country's future but also the severe austerity policies demanded in exchange for financial aid from foreign lenders.
Failed Options
Attempts to secure financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, those punitive conditions were subjected to a popular referendum, an action which threw the EU into further existential crisis.
Although the vote was carried resoundingly by those who opposed the cuts, the prime minister was forced to reject its outcome and agree to a bailout package with foreign lenders that turned out to be even harsher.
Breaking Point
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the figure who attracted media attention, who appeared on the covers of magazines globally … it seemed he relished the spotlight.”
When the minister outlined a contingency plan that included creating a secondary currency and issuing coupons to pensioners, the leader said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and sensitive management.”
He further claimed that his aggressive approach made him more and more alone with colleagues, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
The account of history has provoked fury and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
