In a freshly published memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back as he reflects on the chaotic period of Greece's financial crisis.
An Unconventional Choice
In the ex-PM's version, he selected that maverick academic Varoufakis to be the treasury head largely due to the latter's global profile along with his very persuasive abilities when it came to communicator.
“He was, in reality, more like a celebrity rather than an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras alleges that his finance chief had his own motives which included advancing Varoufakis's publications and testing out his economic models on Greece rather than truly fighting for the country's economic stability.
He noted how those discussions to stave off insolvency became “not only a way of achieving improved terms for Greece. They became an experiment, a monumental chance to prove the truth of his ideas.”
Critical Negotiations
During volatile negotiations, the country found itself dangerously close to exiting the single currency area.
On the line was both Greece's future but also those punishing austerity measures demanded in return for rescue loans from foreign lenders.
Unsuccessful Options
Attempts to find financing from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Referendum Followed by U-Turn
In July 2015, those excoriating bailout terms were put to a popular referendum, a move which plunged Europe into further crisis of identity.
Although the vote was won decisively by those who opposed the cuts, the prime minister had little option but to ignore the result and negotiate a rescue deal with creditors that turned out to be more severe.
Final Straw
Tsipras revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who drew publicity, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan that included establishing a parallel currency as well as issuing coupons to retirees, Tsipras knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes that his former ally demonstrated himself “unsuitable for an agreement that required complex and delicate handling.”
He further wrote that his aggressive style made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for Grexit.
The retelling of events has provoked anger along with shock in some quarters, while the former minister has so far maintained a deafening silence regarding these claims.
