In a newly released memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches as he examines that chaotic period during Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, Tsipras selected the maverick academic Varoufakis as the treasury head mainly due to his worldwide fame along with Varoufakis's “extremely attractive” abilities when it came to speaker.
“In reality, he was, in reality, more of a personality and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
The former leader suggests how his finance chief possessed a personal motives which involved advancing Varoufakis's publications and experimenting with his theories using Greece instead of genuinely fighting for its financial survival.
Tsipras explained how those talks to stave off bankruptcy were “not only a method of achieving a better deal for Greece. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's theories.”
Critical Talks
During tense negotiations, the country found itself dangerously on the brink of exiting the eurozone.
On the line lay not only Greece's future but also the severe cutbacks required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to secure financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those excoriating bailout terms were put to a public vote, an action which threw the EU into a deeper existential crisis.
Even though the vote was carried decisively by voters who opposed the cuts, the prime minister had little option but to reject its outcome and agree to a rescue deal with foreign lenders that turned out to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency as well as issuing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive management.”
Tsipras further claimed that Varoufakis's aggressive style made him more and more alone with colleagues, put Greece at risk, and assisted hardliners that were pushing for a Greek exit from the euro.
This retelling of events has provoked anger and shock in some quarters, whereas Varoufakis has kept a deafening silence on the matter.
