In a newly released memoir, called Ithaki, the former leader Alexis Tsipras pulls no punches as he reflects on the chaotic era during Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, he selected the unorthodox economist Varoufakis to be his treasury head largely due to the latter's global profile and his “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more like a star and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests that his finance chief possessed his own motives that included promoting Varoufakis's publications and testing out his own theories on Greece rather than truly fighting for its financial survival.
Tsipras wrote how the talks to avoid insolvency were “not only a way to secure improved terms for the country. They became an experiment, a monumental chance to demonstrate the truth of his theories.”
Critical Talks
Amid rollercoaster discussions, the country found itself dangerously close to exiting the single currency area.
At stake was not only Greece's future but also those severe cutbacks required in return for rescue loans from international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, such as a desperate plea to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, a move which plunged Europe into a deeper crisis of identity.
Even though the vote was won decisively by voters who opposed austerity, Tsipras had little option to reject its outcome then negotiate a bailout package from creditors which turned out to be even harsher.
Breaking Point
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew media attention, who graced the front pages of publications globally … it seemed he relished his new role.”
After the minister proposed a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and delicate management.”
He further claimed how Varoufakis's confrontational approach left him increasingly isolated with colleagues, put Greece at risk, while helped hardliners who were pushing for Grexit.
This retelling of events has been met with anger along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
