Within his freshly published personal account, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
An Unconventional Choice
As per the ex-PM's recollections, he appointed the unorthodox economist Varoufakis as the treasury head largely because of the latter's worldwide fame and his “extremely attractive” skills as a communicator.
“In reality, he was, in reality, more like a star rather than an economist,” wrote Tsipras.
Clashing Priorities
The former leader suggests how his finance chief possessed his own motives which involved promoting Varoufakis's publications as well as experimenting with his economic models using Greece rather than truly fighting for its economic stability.
Tsipras wrote that the negotiations to avoid insolvency were “not only a way to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
High-Stakes Talks
During tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also the punishing cutbacks required in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find financing from other sources, such as a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to tossing cash into the garbage, the Russian leader reportedly informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, the harsh bailout terms were put to a public vote, a move which plunged Europe into a deeper crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras was forced to reject its outcome then agree to a rescue deal with foreign lenders that turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the face of the talks, the man who attracted publicity, who graced the front pages of publications the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as issuing vouchers to pensioners, Tsipras knew that it was game over and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, Tsipras asserts that Varoufakis demonstrated himself to be “unfit for a deal demanding complex and delicate management.”
He further wrote that Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, while helped hardliners that were advocating a Greek exit from the euro.
This account of events has provoked fury along with shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
