In a recently unveiled memoir, called Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that turbulent period of Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, Tsipras appointed the maverick academic Varoufakis as his finance minister primarily because of his international reputation and Varoufakis's “extremely attractive” skills as a public orator.
“In reality, he was, in reality, more of a celebrity rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests that his finance chief had his own motives that involved advancing Varoufakis's publications as well as testing out his game theories using Greece rather than genuinely advocating the country's economic stability.
He wrote that those discussions to prevent insolvency were “not only a way to secure improved terms for the country. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Talks
During volatile discussions, Greece came dangerously close to exiting the eurozone.
At stake was both Greece's destiny but also the punishing austerity measures required in return for financial aid from international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including an urgent plea to the Kremlin to buy Greek government bonds, were rejected.
Assisting Greece was tantamount to tossing cash in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the punitive bailout terms were put to a popular referendum, a move which plunged Europe into a further crisis of identity.
Even though the referendum was carried decisively by those who opposed austerity, the prime minister had little option to reject its outcome then agree to a rescue deal from creditors which turned out to be tougher.
Breaking Point
The ex-PM claimed how he started questioning Varoufakis relatively soon.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of publications the world over … it seemed he relished the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for an agreement that required intricate and sensitive management.”
Tsipras also claimed that Varoufakis's confrontational approach made him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners who were advocating Grexit.
The retelling of history has been met with anger along with shock among certain groups, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
