In a newly released memoir, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches while he examines that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
In the ex-PM's account, he selected the maverick economist Varoufakis to be the treasury head largely because of the latter's worldwide fame and Varoufakis's very persuasive skills when it came to communicator.
“In reality, he was, in reality, more of a personality and less of an economist,” recalled the 51-year-old.
Conflicting Agendas
Tsipras suggests that his finance chief had his own motives which included advancing Varoufakis's publications as well as testing out his own economic models using the nation instead of truly fighting for its economic stability.
He noted how those discussions to avoid bankruptcy became “not only a method to secure a better deal for Greece. They were a test, a monumental chance to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid tense negotiations, the country found itself perilously close to leaving the single currency area.
At stake lay not only Greece's future but also those severe austerity policies required in exchange for rescue loans by international creditors.
Unsuccessful Options
Attempts to find funds from other sources, such as a desperate plea to Russia to purchase Greek bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the punitive conditions were subjected to a popular referendum, a move that plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by those who opposed the cuts, Tsipras was forced to ignore the result then negotiate a bailout package with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he relished his new role.”
When the minister proposed a backup strategy that included establishing a parallel currency and issuing coupons to retirees, Tsipras said he realised that it was game over and asked him: “Are you serious?”
Enduring Rebuke
Within the memoir, the author concludes how Varoufakis demonstrated himself “unfit for an agreement that required intricate and delicate management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, and helped hardliners who were pushing for a Greek exit from the euro.
The retelling of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
