Within his recently unveiled personal account, called Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on that turbulent era during Greece's economic turmoil.
A Controversial Choice
In the ex-PM's recollections, Tsipras chose that unorthodox economist Varoufakis as the finance minister largely because of his international reputation along with Varoufakis's very persuasive abilities as a communicator.
“In reality, he was, actually, more like a celebrity rather than an economist,” stated the 51-year-old.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed his own motives which included promoting his books as well as experimenting with his own theories on Greece instead of truly advocating the country's financial survival.
Tsipras noted how those discussions to prevent insolvency became “not just a way to secure a better deal for the country. They were an experiment, an historic opportunity to prove the validity of Varoufakis's economic theories.”
Critical Negotiations
During volatile discussions, the country came dangerously close to leaving the single currency area.
At stake was not only the country's destiny and those punishing austerity policies required in exchange for rescue loans from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Referendum and Reversal
In July 2015, the harsh bailout terms were put to a popular referendum, a move which plunged Europe into a further existential crisis.
Although the referendum was carried resoundingly by those who opposed the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal from foreign lenders which proved to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister relatively soon.
“He was the public image of the talks, the man who attracted publicity, who graced the front pages of publications globally … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a contingency plan involving creating a secondary currency and issuing vouchers to retirees, Tsipras said he realised it was the end questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes how his former ally had proved himself to be “unfit for a deal demanding complex and delicate handling.”
He further wrote that Varoufakis's aggressive approach left him increasingly isolated among peers, put Greece at risk, and assisted hawks who were pushing for a Greek exit from the euro.
The account of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a conspicuous quiet regarding these claims.
