In a recently unveiled memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches as he reflects on that turbulent period during Greece's financial crisis.
A Controversial Appointment
In the ex-PM's account, Tsipras appointed the maverick academic Varoufakis to be the treasury head mainly because of his worldwide fame and his very persuasive abilities as a speaker.
“He was, in reality, more like a celebrity and less of an economist,” wrote Tsipras.
Clashing Priorities
The former leader alleges how his finance chief possessed a personal motives that included advancing Varoufakis's publications and experimenting with his own theories on Greece instead of truly advocating its financial survival.
Tsipras noted how the discussions to stave off insolvency became “not just a way to secure a better deal for the country. They became an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During volatile discussions, Greece came perilously on the brink of exiting the single currency area.
On the line was not only Greece's destiny but also those harsh cutbacks demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Attempts to find funds from other sources, such as an urgent plea to Russia to purchase Greek bonds, went unanswered.
Helping Greece would be tantamount to throwing money in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and U-Turn
That summer, the excoriating conditions were subjected to a public vote, a move that threw the EU into a deeper existential crisis.
Even though the vote was won decisively by those against the cuts, the prime minister was forced to ignore the result then negotiate a rescue deal with creditors which turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the front pages of publications globally … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency as well as issuing coupons to pensioners, the leader said he realised that it was the end and asked Varoufakis: “Can you be serious?”
Lasting Criticism
In the book, the author asserts that Varoufakis had proved himself “unfit for an agreement demanding intricate and delicate management.”
Tsipras further claimed that his aggressive style left him increasingly isolated among peers, put Greece at risk, while helped hawks that were pushing for a Greek exit from the euro.
This account of events has been met with anger and stunned disbelief among certain groups, whereas Varoufakis has maintained a deafening silence on the matter.
