Within his newly released memoir, called Ithaki, the ex- leader Alexis Tsipras pulls no punches as he reflects on the chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, he selected that maverick academic Varoufakis as his treasury head largely due to the latter's worldwide fame along with his highly compelling skills as a speaker.
“In reality, he was, truthfully, more of a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges how his finance chief possessed his own motives that involved promoting his publications and testing out his game theories using the nation rather than truly advocating the country's financial survival.
Tsipras wrote how those talks to avoid insolvency were “not just a method to secure a better deal for Greece. They became a test, a monumental opportunity to prove the validity of his ideas.”
High-Stakes Negotiations
Amid volatile negotiations, the country found itself perilously close to leaving the single currency area.
At stake was not only the country's destiny but also those severe austerity measures demanded in return for bailout funds by international creditors.
Unsuccessful Options
Efforts to find funds from other sources, such as an urgent plea to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the harsh conditions were put to a public vote, a move that threw the EU into a deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister had little option but to reject its outcome then negotiate a bailout package with foreign lenders that proved to be even harsher.
Final Straw
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After the minister proposed a contingency plan that included establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
In the book, Tsipras concludes that his former ally had proved himself to be “unsuitable for an agreement demanding complex and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him more and more alone among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This account of events has been met with anger and shock in some quarters, while Varoufakis has kept a conspicuous quiet regarding these claims.
