In a freshly published personal account, named Ithaki, the ex- leader Alexis Tsipras does not hold back as he reflects on the chaotic era of Greece's debt drama.
A Controversial Appointment
According to the ex-PM's recollections, he chose that unorthodox academic Varoufakis to be his treasury head primarily because of his international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own agenda which included promoting his books as well as experimenting with his own theories on the nation rather than genuinely fighting for its financial survival.
He noted how the discussions to prevent insolvency became “not just a way to secure improved terms for the country. They became a test, a monumental chance to prove the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny and the harsh austerity policies required in exchange for bailout funds by foreign lenders.
Failed Options
Attempts to find funds elsewhere, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, a move that threw the EU into a deeper existential crisis.
Although the vote was carried decisively by voters who opposed austerity, the prime minister had little option to ignore the result and agree to a rescue deal from creditors that turned out to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of magazines globally … it seemed he was enjoying his new role.”
After Varoufakis proposed a backup strategy involving establishing a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end and asked him: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement demanding complex and delicate management.”
He also wrote how Varoufakis's confrontational style made him increasingly isolated with colleagues, endangered the country, and assisted hawks who were advocating a Greek exit from the euro.
This account of history has been met with anger along with stunned disbelief in some quarters, whereas the former minister has kept a deafening silence regarding these claims.
