In a recently unveiled memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on that turbulent era of Greece's debt drama.
An Unconventional Choice
According to the ex-PM's recollections, he chose the unorthodox academic Varoufakis to be his treasury head primarily because of his worldwide fame and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Agendas
Tsipras suggests that his finance chief possessed a personal motives which included advancing Varoufakis's books and experimenting with his own economic models on Greece rather than truly advocating its economic stability.
He explained that those negotiations to prevent bankruptcy became “not only a method to secure a better deal for Greece. They became an experiment, an historic opportunity to demonstrate the validity of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came perilously on the brink of leaving the single currency area.
At stake lay not only the country's destiny and the harsh austerity measures demanded in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate appeal to Russia to purchase Greek bonds, were rejected.
Assisting Greece would be equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Public Vote and Reversal
That summer, the punitive bailout terms were put to a public vote, a move that plunged Europe into deeper crisis of identity.
Although the vote was carried decisively by those who opposed the cuts, the prime minister had little option but to reject its outcome then agree to a rescue deal with creditors that turned out to be more severe.
Breaking Point
Tsipras claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the covers of publications globally … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan involving establishing a parallel currency and issuing coupons to retirees, Tsipras knew it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras further claimed that Varoufakis's confrontational style left him increasingly isolated with colleagues, endangered the country, and helped hardliners that were pushing for Grexit.
The retelling of history has been met with fury along with stunned disbelief among certain groups, whereas the former minister has so far kept a conspicuous quiet regarding these claims.
