Within his freshly published memoir, named Ithaki, the former premier Alexis Tsipras does not hold back as he examines that turbulent era of Greece's debt drama.
An Unconventional Choice
In Tsipras's account, he selected that maverick academic Varoufakis as the treasury head largely because of his worldwide fame and Varoufakis's “extremely attractive” skills as a communicator.
“He was, in reality, more like a celebrity rather than an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had his own motives which included promoting his books and testing out his own economic models on Greece instead of truly fighting for its economic stability.
He explained that the discussions to prevent bankruptcy were “not only a method to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Talks
Amid rollercoaster discussions, Greece found itself perilously on the brink of exiting the eurozone.
On the line was both the country's destiny but also those harsh austerity measures required in exchange for bailout funds by international creditors.
Unsuccessful Options
Attempts to find funds from other sources, including an urgent appeal to the Kremlin to buy Greek government bonds, fell on stony ground.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
In July 2015, those punitive conditions were subjected to a public vote, an action which plunged the EU into a further existential crisis.
Even though the vote was won decisively by voters who opposed austerity, Tsipras was forced to reject its outcome and negotiate a bailout package from foreign lenders which turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“He was the face of negotiation, the figure who attracted publicity, who appeared on the covers of magazines the world over … it seemed he relished the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Enduring Rebuke
Within the memoir, Tsipras asserts how Varoufakis had proved himself “unfit for an agreement demanding complex and delicate management.”
He further claimed how his confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
The account of history has been met with anger and stunned disbelief in some quarters, while Varoufakis has kept a conspicuous quiet on the matter.
