Within his freshly published memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches while he revisits that chaotic period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, he appointed the maverick academic Varoufakis as the finance minister largely due to the latter's international reputation along with his highly compelling abilities as a public orator.
“He was, truthfully, more of a star and less of an economist,” recalled Tsipras.
Clashing Agendas
The former leader alleges that Varoufakis had his own motives which involved advancing Varoufakis's books and testing out his own theories using the nation rather than genuinely advocating its financial survival.
He wrote how the negotiations to prevent bankruptcy became “not only a method of achieving improved terms for the country. They became a test, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense negotiations, Greece came dangerously close to leaving the single currency area.
At stake lay both the country's destiny but also those severe cutbacks demanded in return for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent appeal to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have told Tsipras during their meeting.
Public Vote Followed by Reversal
In July 2015, those excoriating bailout terms were put to a popular referendum, a move that threw the EU into a further crisis of identity.
Even though the vote was carried decisively by voters who opposed austerity, Tsipras had little option but to reject its outcome and agree to a bailout package from creditors that turned out to be even harsher.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the man who drew publicity, who appeared on the front pages of publications globally … it seemed he was enjoying the spotlight.”
When the minister proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, Tsipras knew it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal that required intricate and delicate management.”
He further claimed that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked fury along with stunned disbelief in some quarters, while the former minister has kept a conspicuous quiet regarding these claims.
