Within his newly released memoir, titled Ithaki, the former leader Alexis Tsipras spares no criticism while he revisits that chaotic era of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's recollections, Tsipras chose that unorthodox economist Varoufakis to be his treasury head largely due to the latter's worldwide fame along with Varoufakis's very persuasive abilities as a speaker.
“He was, truthfully, more like a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Priorities
Tsipras alleges how his finance chief possessed his own motives which involved promoting his books as well as experimenting with his own theories using Greece instead of truly advocating the country's financial survival.
Tsipras wrote how the discussions to prevent insolvency were “not just a method to secure improved terms for Greece. They were a test, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
Critical Negotiations
Amid rollercoaster discussions, the country found itself dangerously on the brink of leaving the single currency area.
At stake was not only the country's future and those harsh austerity policies required in return for financial aid from international creditors.
Failed Alternatives
Attempts to find funds from other sources, such as a desperate plea to the Kremlin to purchase Greek bonds, were rejected.
Helping Greece would be equivalent to throwing money in the trash-can, Putin reportedly told Tsipras during their meeting.
Referendum and Reversal
That summer, the excoriating bailout terms were subjected to a popular referendum, an action which plunged Europe into deeper existential crisis.
Even though the referendum was won decisively by those against the cuts, the prime minister was forced to reject its outcome and negotiate a rescue deal with foreign lenders that proved to be more severe.
Breaking Point
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the front pages of publications the world over … it seemed he was enjoying his new role.”
When Varoufakis outlined a backup strategy involving establishing a parallel currency as well as distributing vouchers to retirees, Tsipras said he realised it was the end questioning him: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras concludes how his former ally had proved himself “unsuitable for an agreement that required intricate and delicate management.”
He further wrote how his confrontational style left him more and more alone with colleagues, endangered the country, and helped hawks who were pushing for Grexit.
The account of history has provoked anger and stunned disbelief in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
