In a newly released memoir, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he examines that chaotic period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's account, he chose the maverick economist Varoufakis to be his finance minister largely because of the latter's international reputation along with Varoufakis's highly compelling skills when it came to public orator.
“He was, truthfully, more like a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests that Varoufakis had his own agenda which involved promoting Varoufakis's publications as well as testing out his theories using the nation rather than truly fighting for its financial survival.
Tsipras wrote that the talks to prevent insolvency became “not only a method of achieving improved terms for the country. They were a test, a monumental opportunity to prove the truth of his theories.”
Critical Talks
Amid tense negotiations, Greece came dangerously on the brink of exiting the single currency area.
At stake was not only Greece's destiny but also the harsh austerity measures required in exchange for bailout funds from international creditors.
Failed Options
Efforts to find funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum Followed by Reversal
In July 2015, the harsh bailout terms were subjected to a popular referendum, an action that plunged the EU into further existential crisis.
Although the referendum was won resoundingly by voters against austerity, Tsipras had little option to reject its outcome and agree to a bailout package from foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes how his former ally had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras also claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of events has provoked fury along with shock among certain groups, while Varoufakis has so far maintained a conspicuous quiet on the matter.
