In a recently unveiled memoir, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he revisits the chaotic period of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, Tsipras chose the unorthodox academic Varoufakis as his treasury head mainly because of his global profile and Varoufakis's “extremely attractive” abilities as a public orator.
“He was, in reality, more of a star and less of an economic expert,” recalled the 51-year-old.
Clashing Priorities
Tsipras suggests how Varoufakis had a personal motives which included promoting Varoufakis's publications and testing out his own economic models on Greece instead of genuinely advocating its economic stability.
He wrote how those talks to avoid bankruptcy became “not only a way to secure a better deal for the country. They were an experiment, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country came dangerously close to exiting the eurozone.
At stake was not only Greece's destiny and those punishing austerity policies demanded in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, including an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Public Vote and U-Turn
That summer, those excoriating conditions were subjected to a public vote, an action that threw Europe into deeper crisis of identity.
Even though the referendum was won resoundingly by those who opposed the cuts, Tsipras was forced to reject its outcome and negotiate a rescue deal with creditors that turned out to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning his finance minister quite early on.
“He was the public image of the talks, the man who attracted media attention, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When the minister proposed a contingency plan that included creating a secondary currency and issuing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras concludes that his former ally had proved himself “unfit for a deal that required intricate and sensitive management.”
Tsipras further wrote that Varoufakis's aggressive approach left him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for Grexit.
The retelling of history has been met with fury and shock in some quarters, whereas Varoufakis has maintained a deafening silence regarding these claims.
