In a recently unveiled personal account, called Ithaki, the former prime minister Alexis Tsipras pulls no punches as he reflects on that turbulent period of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's version, he selected the unorthodox economist Varoufakis to be his finance minister mainly because of his global profile along with Varoufakis's “extremely attractive” skills as a communicator.
“In reality, he was, actually, more of a star rather than an economic expert,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that his finance chief possessed a personal agenda which included promoting Varoufakis's books and testing out his game theories on the nation rather than truly fighting for the country's economic stability.
He wrote that the talks to avoid insolvency became “not just a method of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's ideas.”
Critical Talks
Amid rollercoaster discussions, Greece found itself perilously on the brink of leaving the eurozone.
On the line was not only the country's destiny and those harsh austerity measures demanded in return for rescue loans by international creditors.
Failed Options
Attempts to find financing elsewhere, such as a desperate plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote Followed by Reversal
That summer, those punitive conditions were subjected to a public vote, an action that threw the EU into a further existential crisis.
Although the referendum was won resoundingly by voters against austerity, the prime minister was forced to reject its outcome then negotiate a bailout package from foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM claimed that he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who drew media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras concludes that his former ally demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
He further claimed that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were advocating Grexit.
The retelling of history has provoked anger and shock in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet on the matter.
