Within his freshly published memoir, titled Ithaki, the ex- leader Alexis Tsipras does not hold back as he reflects on that chaotic period of Greece's financial crisis.
A Controversial Choice
According to Tsipras's account, he chose that unorthodox economist Varoufakis as the treasury head mainly because of his worldwide fame along with Varoufakis's highly compelling abilities when it came to communicator.
“He was, truthfully, more like a star rather than an economist,” recalled the 51-year-old.
Clashing Priorities
The former leader claims that Varoufakis had a personal agenda that involved advancing his publications as well as testing out his theories on the nation instead of genuinely fighting for its financial survival.
Tsipras wrote that those discussions to stave off insolvency became “not just a way to secure a better deal for the country. They were an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster discussions, the country found itself dangerously close to exiting the single currency area.
At stake lay not only the country's future but also the severe austerity measures required in exchange for financial aid from international creditors.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as a desperate appeal to Russia to buy Greek government bonds, went unanswered.
Assisting Greece would be equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, those punitive conditions were subjected to a popular referendum, an action that threw Europe into further existential crisis.
Although the vote was carried decisively by voters who opposed austerity, the prime minister had little option but to ignore the result then agree to a rescue deal from foreign lenders which turned out to be more severe.
Final Straw
Tsipras claimed that he began to doubt Varoufakis quite early on.
“He was the face of negotiation, the man who drew media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy involving creating a secondary currency and issuing coupons to retirees, Tsipras knew that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal that required intricate and delicate management.”
Tsipras also claimed how Varoufakis's aggressive approach made him increasingly isolated among peers, endangered the country, while assisted hawks who were pushing for Grexit.
This retelling of events has provoked fury along with shock among certain groups, while Varoufakis has so far kept a conspicuous quiet regarding these claims.
