In a newly released memoir, called Ithaki, the former leader Alexis Tsipras does not hold back as he revisits the turbulent era of Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's recollections, Tsipras selected that maverick economist Varoufakis to be his treasury head mainly because of the latter's global profile and his highly compelling skills when it came to speaker.
“He was, actually, more of a personality and less of an economic expert,” stated Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis had a personal agenda which included advancing Varoufakis's publications and experimenting with his economic models on Greece instead of genuinely fighting for the country's financial survival.
Tsipras noted that those negotiations to stave off insolvency were “not only a method of achieving a better deal for the country. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster discussions, Greece came dangerously on the brink of exiting the single currency area.
On the line lay not only the country's future but also the harsh austerity policies required in return for financial aid by foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including 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, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote and Reversal
In July 2015, the excoriating bailout terms were subjected to a public vote, an action that plunged the EU into a further crisis of identity.
Even though the vote was won resoundingly by those against the cuts, Tsipras was forced to ignore the result and agree to a rescue deal with foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM claimed that he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the figure who attracted media attention, who appeared on the front pages of publications globally … he gave the impression he relished the spotlight.”
When Varoufakis proposed a contingency plan that included creating a secondary currency and issuing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the memoir, Tsipras asserts that his former ally had proved himself to be “unsuitable for a deal that required intricate and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
This account of events has provoked fury and stunned disbelief in some quarters, while the former minister has so far kept a conspicuous quiet on the matter.
