In a newly released memoir, titled Ithaki, the former prime minister Alexis Tsipras spares no criticism as he reflects on the turbulent era of Greece's debt drama.
An Unconventional Appointment
As per Tsipras's version, Tsipras chose the unorthodox economist Varoufakis to be his treasury head mainly due to his global profile and his very persuasive skills when it came to public orator.
“He was, actually, more like a star and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
Tsipras claims that Varoufakis possessed a personal agenda which involved advancing Varoufakis's books as well as testing out his theories using the nation instead of genuinely fighting for its economic stability.
Tsipras wrote that those discussions to prevent bankruptcy became “not just a way to secure a better deal for Greece. They became an experiment, a monumental opportunity to demonstrate the validity of Varoufakis's economic theories.”
Critical Negotiations
During tense negotiations, the country came dangerously on the brink of exiting the eurozone.
On the line lay both the country's future and those severe austerity policies required in exchange for financial aid by international creditors.
Failed Alternatives
Attempts to find financing from other sources, including a desperate plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money into the garbage, the Russian leader is reputed to have told Tsipras in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were put to a popular referendum, an action that threw Europe into a deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, the prime minister had little option but to ignore the result and agree to a bailout package from foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he started questioning his finance minister quite early on.
“He was the public image of the talks, the figure who drew media attention, who appeared on the covers of magazines the world over … it seemed he was enjoying his new role.”
When Varoufakis proposed a contingency plan involving creating a parallel currency as well as distributing coupons to retirees, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Lasting Criticism
In the book, the author concludes how Varoufakis had proved himself to be “unsuitable for a deal that required intricate and delicate management.”
Tsipras also claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hardliners that were pushing for Grexit.
This account of history has been met with fury along with stunned disbelief in some quarters, whereas Varoufakis has kept a conspicuous quiet on the matter.
