In a freshly published memoir, titled Ithaki, the ex- prime minister Alexis Tsipras does not hold back as he examines the chaotic period during Greece's debt drama.
An Unconventional Choice
In the ex-PM's account, he chose the maverick economist Varoufakis to be his finance minister largely because of his international reputation along with his highly compelling skills as a communicator.
“He was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Conflicting Agendas
Tsipras alleges how his finance chief had a personal agenda which involved advancing Varoufakis's books and testing out his own theories using Greece rather than truly advocating its economic stability.
He wrote that the talks to stave off insolvency became “not just a way of achieving improved terms for the country. They became an experiment, an historic chance to prove the validity of his economic theories.”
Critical Talks
Amid volatile discussions, Greece came dangerously on the brink of leaving the eurozone.
On the line was both Greece's destiny but also the severe cutbacks demanded in exchange for bailout funds by foreign lenders.
Unsuccessful Options
Attempts to find funds elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras during their meeting.
Public Vote Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, an action that threw the EU into further crisis of identity.
Although the referendum was carried decisively by voters who opposed austerity, Tsipras had little option but to ignore the result then negotiate a rescue deal from foreign lenders that turned out to be more severe.
Breaking Point
The ex-PM revealed that he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
When Varoufakis outlined a contingency plan that included creating a parallel currency as well as issuing coupons to retirees, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras concludes that his former ally demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
He also claimed how Varoufakis's confrontational approach left him increasingly isolated among peers, put Greece at risk, while helped hardliners that were pushing for Grexit.
This retelling of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
