Within his newly released memoir, called Ithaki, the former prime minister Alexis Tsipras does not hold back as he revisits that turbulent era during Greece's financial crisis.
An Unconventional Appointment
According to the ex-PM's version, Tsipras selected the maverick academic Varoufakis as the finance minister primarily due to the latter's global profile along with his very persuasive skills when it came to public orator.
“He was, in reality, more like a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis had his own agenda that included promoting his books and experimenting with his economic models using Greece rather than genuinely advocating the country's financial survival.
Tsipras wrote how the talks to prevent insolvency became “not only a way to secure a better deal for the country. They became a test, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid volatile discussions, Greece found itself dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future and the punishing austerity policies required in return for financial aid by international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh bailout terms were subjected to a popular referendum, an action that plunged Europe into a deeper existential crisis.
Although the vote was carried decisively by voters who opposed the cuts, the prime minister had little option to ignore the result then negotiate a rescue deal with creditors which proved to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“He was the face of negotiation, the figure who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a backup strategy that included establishing a parallel currency as well as issuing coupons to retirees, the leader knew it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the memoir, the author concludes that his former ally had proved himself “unfit for a deal demanding intricate and delicate management.”
Tsipras also claimed that his confrontational approach left him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating a Greek exit from the euro.
The account of events has provoked anger along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
