Within his recently unveiled memoir, called Ithaki, the ex- prime minister Alexis Tsipras does not hold back while he reflects on that turbulent period of Greece's debt drama.
An Unconventional Choice
In the ex-PM's recollections, Tsipras selected that unorthodox academic Varoufakis to be the treasury head largely because of the latter's global profile and Varoufakis's highly compelling abilities when it came to speaker.
“In reality, he was, truthfully, more of a celebrity and less of an economist,” wrote the 51-year-old.
Clashing Agendas
Tsipras claims that his finance chief had his own agenda that involved advancing Varoufakis's publications and testing out his own theories on Greece instead of truly fighting for its economic stability.
Tsipras explained how the negotiations to stave off bankruptcy were “not only a method of achieving a better deal for Greece. They became a test, an historic opportunity to prove the validity of his theories.”
Critical Negotiations
During tense discussions, Greece found itself perilously close to exiting the single currency area.
On the line was not only Greece's destiny but also those harsh austerity policies required in return for rescue loans by foreign lenders.
Failed Options
Efforts to find financing from other sources, including a desperate appeal to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash into the garbage, the Russian leader is reputed to have told Tsipras during their meeting.
Referendum and Reversal
That summer, those excoriating conditions were subjected to a public vote, an action which threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by voters against the cuts, the prime minister had little option but to ignore the result then agree to a rescue deal with foreign lenders which proved to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised that it was the end and asked him: “Is this for real?”
Lasting Criticism
In the book, the author concludes how his former ally had proved himself “unsuitable for an agreement demanding complex and delicate handling.”
He also wrote how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of events has provoked fury along with stunned disbelief among certain groups, while the former minister has so far maintained a conspicuous quiet regarding these claims.
