In a recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he revisits that turbulent period of Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, he appointed that maverick academic Varoufakis as the treasury head largely because of his global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“In reality, he was, truthfully, more of a personality rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
The former leader suggests that his finance chief had a personal agenda that included advancing Varoufakis's publications as well as experimenting with his economic models on Greece instead of truly advocating its economic stability.
Tsipras wrote that the negotiations to avoid bankruptcy became “not only a way of achieving a better deal for Greece. They were an experiment, an historic chance to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense discussions, Greece found itself dangerously close to exiting the single currency area.
At stake lay not only the country's destiny and the harsh cutbacks required in exchange for rescue loans by foreign lenders.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, a move which plunged Europe into a deeper existential crisis.
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 bailout package from foreign lenders that turned out to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the public image of negotiation, the man who drew media attention, who graced the covers of publications the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader knew that it was game over questioning him: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that Varoufakis had proved himself “unsuitable for a deal that required complex and sensitive management.”
Tsipras further wrote how his confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has been met with anger and shock in some quarters, while Varoufakis has so far kept a deafening silence regarding these claims.
