In a newly released autobiography, titled Ithaki, the former leader Alexis Tsipras spares no criticism as he reflects on that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, he selected the maverick economist Varoufakis to be his treasury head largely because of his global profile and Varoufakis's “extremely attractive” skills when it came to speaker.
“In reality, he was, in reality, more of a celebrity and less of an economic expert,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis possessed his own agenda which involved advancing his books as well as experimenting with his own theories on Greece rather than truly advocating its economic stability.
Tsipras explained how those negotiations to stave off insolvency were “not just a method of achieving a better deal for Greece. They were a test, a monumental opportunity to prove the validity of Varoufakis's ideas.”
High-Stakes Talks
Amid tense discussions, the country came dangerously on the brink of exiting the single currency area.
At stake was not only the country's future and the punishing austerity policies demanded in return for financial aid by international creditors.
Unsuccessful Options
Attempts to find financing from other sources, including a desperate appeal to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a popular referendum, an action that plunged Europe into a deeper existential crisis.
Even though the referendum was carried resoundingly by voters against the cuts, the prime minister had little option to ignore the result then agree to a rescue deal with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the face of the talks, the man who attracted media attention, who appeared on the covers of publications globally … he gave the impression he was enjoying his new role.”
When the minister outlined a contingency plan that included creating a parallel currency as well as distributing coupons to pensioners, the leader said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis had proved himself “unfit for an agreement that required intricate and delicate management.”
Tsipras further claimed how his confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners that were advocating a Greek exit from the euro.
This retelling of history has provoked anger along with stunned disbelief in some quarters, while the former minister has so far kept a deafening silence regarding these claims.
