In a newly released memoir, titled Ithaki, the former premier Alexis Tsipras does not hold back while he revisits that turbulent period during Greece's economic turmoil.
A Controversial Appointment
According to Tsipras's account, he chose that maverick economist Varoufakis to be the treasury head primarily because of the latter's international reputation along with his highly compelling abilities as a speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” wrote the 51-year-old.
Conflicting Agendas
The former leader claims that Varoufakis had his own motives which involved promoting his books and experimenting with his theories using Greece rather than genuinely fighting for its economic stability.
He noted that the discussions to avoid bankruptcy were “not just a method of achieving a better deal for Greece. They became a test, an historic chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
Amid rollercoaster discussions, Greece came perilously close to exiting the single currency area.
At stake was not only Greece's future and the severe austerity measures required in return for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, a move which threw the EU into a deeper crisis of identity.
Although the vote was carried resoundingly by those against the cuts, Tsipras was forced to reject its outcome and negotiate a bailout package from creditors which turned out to be tougher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the figure who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying his new role.”
When the minister proposed a backup strategy that included establishing a secondary currency and issuing coupons to retirees, the leader said he realised it was game over questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts that his former ally had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
Tsipras further claimed that Varoufakis's confrontational approach made him increasingly isolated with colleagues, endangered the country, and assisted hardliners who were advocating Grexit.
This account of events has provoked anger and stunned disbelief in some quarters, while the former minister has maintained a deafening silence regarding these claims.
