Within his freshly published memoir, called Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to the ex-PM's account, Tsipras selected the unorthodox economist Varoufakis to be the treasury head largely because of his worldwide fame and his “extremely attractive” skills when it came to public orator.
“He was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Agendas
The former leader suggests how Varoufakis had his own agenda which included promoting Varoufakis's books as well as experimenting with his own theories on Greece rather than truly fighting for the country's financial survival.
Tsipras noted that the discussions to avoid insolvency were “not just a method to secure a better deal for the country. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid volatile discussions, the country came perilously close to exiting the single currency area.
At stake was both Greece's future and those harsh austerity policies demanded in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, such as an urgent appeal to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin reportedly informed Tsipras during their meeting.
Public Vote Followed by Reversal
That summer, the excoriating bailout terms were subjected to a public vote, an action which plunged Europe into a further existential crisis.
Even though the vote was won decisively by voters against the cuts, Tsipras was forced but to reject its outcome then negotiate a bailout package with creditors which proved to be even harsher.
Final Straw
Tsipras claimed how he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he relished his new role.”
After the minister outlined a contingency plan involving creating a parallel currency and issuing vouchers to retirees, Tsipras said he realised it was the end and asked him: “Can you be serious?”
Enduring Rebuke
In the memoir, the author asserts that his former ally demonstrated himself “unfit for a deal that required intricate and sensitive management.”
He further claimed how Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, while assisted hawks that were pushing for Grexit.
This retelling of events has been met with anger along with shock in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
