Within his newly released memoir, named Ithaki, the former prime minister Alexis Tsipras spares no criticism as he examines that turbulent era of Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's version, Tsipras appointed that maverick academic Varoufakis as his finance minister mainly because of his international reputation and his very persuasive abilities when it came to public orator.
“He was, actually, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests that his finance chief possessed a personal agenda that involved advancing his publications and testing out his economic models on the nation instead of truly advocating its economic stability.
Tsipras noted that the negotiations to prevent bankruptcy were “not just a method of achieving a better deal for the country. They became a test, an historic opportunity to prove the truth of his ideas.”
High-Stakes Negotiations
Amid volatile discussions, the country came perilously on the brink of leaving the eurozone.
On the line lay not only the country's destiny but also the severe cutbacks demanded in exchange for rescue loans from foreign lenders.
Failed Options
Attempts to find financing elsewhere, including an urgent appeal to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping Greece was tantamount to throwing money into the garbage, Putin is reputed to have told his Greek counterpart during their meeting.
Public Vote and U-Turn
In July 2015, those harsh bailout terms were put to a public vote, a move which threw Europe into deeper crisis of identity.
Although the vote was carried decisively by voters against austerity, Tsipras was forced to ignore the result then negotiate a rescue deal from creditors that turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt Varoufakis relatively soon.
“Varoufakis was the face of negotiation, the man who drew media attention, who appeared on the front pages of publications the world over … he gave the impression he relished his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency and distributing coupons to pensioners, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement demanding complex and delicate handling.”
He further wrote how Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, and helped hawks who were pushing for Grexit.
This account of events has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
