Within his recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he reflects on the turbulent period during Greece's debt drama.
An Unconventional Appointment
In the ex-PM's recollections, he appointed the unorthodox economist Varoufakis as his finance minister largely due to his worldwide fame and Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, in reality, more of a star and less of an economic expert,” recalled the 51-year-old.
Conflicting Agendas
The former leader suggests how his finance chief had a personal agenda which involved promoting Varoufakis's books and experimenting with his own theories using the nation instead of genuinely advocating its financial survival.
He noted that the negotiations to avoid insolvency were “not only a method to secure a better deal for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Talks
Amid tense negotiations, Greece found itself dangerously close to leaving the eurozone.
At stake lay both Greece's destiny but also those punishing austerity measures required in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to find funds from other sources, including a desperate plea to the Kremlin to buy Greek government bonds, went unanswered.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the punitive conditions were subjected to a popular referendum, an action that plunged the EU into deeper crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option but to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt his finance minister relatively soon.
“He was the face of the talks, the man who drew publicity, who graced the front pages of publications the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and distributing vouchers to pensioners, Tsipras knew it was game over and asked him: “Can you be serious?”
Lasting Criticism
Within the book, Tsipras asserts that Varoufakis demonstrated himself “unfit for a deal demanding intricate and sensitive management.”
He also wrote how Varoufakis's confrontational approach made him more and more alone among peers, put Greece at risk, and assisted hawks that were pushing for a Greek exit from the euro.
The account of events has been met with anger and shock in some quarters, whereas the former minister has kept a conspicuous quiet regarding these claims.
