In a freshly published personal account, titled Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that turbulent period during Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, Tsipras selected the maverick academic Varoufakis to be his treasury head mainly due to the latter's global profile along with Varoufakis's highly compelling skills as a public orator.
“In reality, he was, in reality, more like a star and less of an economist,” stated Tsipras.
Conflicting Agendas
Tsipras suggests that Varoufakis possessed a personal agenda which included advancing his books as well as testing out his own theories using Greece instead of truly advocating the country's financial survival.
He wrote that the negotiations to prevent insolvency were “not only a way of achieving improved terms for Greece. They were an experiment, an historic opportunity to demonstrate the truth of his theories.”
High-Stakes Talks
During rollercoaster discussions, Greece found itself perilously on the brink of exiting the single currency area.
At stake lay not only the country's future but also the punishing austerity policies required in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to secure financing elsewhere, including an urgent plea to the Kremlin to purchase Greek bonds, fell on stony ground.
Assisting the indebted country would be tantamount to throwing money in the trash-can, Putin reportedly told Tsipras in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, a move that plunged the EU into a deeper existential crisis.
Even though the referendum was carried decisively by voters against austerity, the prime minister was forced but to ignore the result then agree to a bailout package with foreign lenders that proved to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
When the minister proposed a contingency plan involving creating a parallel currency and distributing coupons to retirees, Tsipras knew that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the memoir, the author concludes that Varoufakis had proved himself to be “unfit for an agreement that required complex and delicate handling.”
Tsipras also wrote how Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, while assisted hawks who were advocating Grexit.
The account of events has been met with fury and shock among certain groups, while the former minister has maintained a deafening silence regarding these claims.
