In a freshly published memoir, called Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits the turbulent era during Greece's financial crisis.
An Unconventional Choice
As per Tsipras's recollections, he selected the maverick academic Varoufakis to be his treasury head mainly because of the latter's international reputation and his very persuasive abilities when it came to speaker.
“In reality, he was, actually, more like a star and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges how his finance chief possessed a personal agenda which included advancing Varoufakis's books and testing out his economic models using Greece instead of genuinely advocating its financial survival.
Tsipras explained how the negotiations to avoid bankruptcy were “not only a way of achieving improved terms for Greece. They were an experiment, a monumental chance to demonstrate the truth of his theories.”
High-Stakes Negotiations
Amid volatile discussions, Greece found itself dangerously close to leaving the single currency area.
On the line was not only the country's destiny and the harsh austerity policies required in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to find financing elsewhere, including an urgent plea to Russia to purchase Greek bonds, went unanswered.
Assisting the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those punitive conditions were put to a public vote, an action that plunged Europe into further existential crisis.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option but to reject its outcome and negotiate a bailout package from creditors which turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt his finance minister relatively soon.
“He was the public image of the talks, the figure who attracted publicity, who graced the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency and issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, Tsipras asserts that Varoufakis demonstrated himself “unsuitable for a deal demanding intricate and delicate management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating Grexit.
This retelling of events has been met with fury along with shock among certain groups, while Varoufakis has maintained a deafening silence regarding these claims.
