Within his recently unveiled memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on that turbulent era of Greece's financial crisis.
A Controversial Choice
According to the ex-PM's account, he selected the maverick academic Varoufakis as his treasury head largely due to the latter's international reputation and his highly compelling skills as a speaker.
“In reality, he was, in reality, more like a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
Tsipras alleges how his finance chief had a personal motives that included promoting his publications as well as experimenting with his game theories using Greece instead of truly fighting for its financial survival.
Tsipras explained how those discussions to stave off insolvency became “not just a method of achieving improved terms for the country. They were a test, an historic chance to demonstrate the truth of his economic theories.”
Critical Talks
Amid tense negotiations, the country came dangerously close to leaving the eurozone.
At stake was not only the country's future but also the severe austerity measures demanded in exchange for bailout funds from foreign lenders.
Failed Options
Attempts to secure funds from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the harsh bailout terms were subjected to a popular referendum, an action which threw the EU into deeper existential crisis.
Even though the referendum was won decisively by voters against austerity, the prime minister had little option to reject its outcome then negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Breaking Point
The ex-PM revealed that he began to doubt his finance minister quite early on.
“Varoufakis was the public image of the talks, the man who drew publicity, who appeared on the covers of magazines globally … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan that included establishing a parallel currency and distributing coupons to pensioners, Tsipras knew that it was game over and asked Varoufakis: “Is this for real?”
Lasting Criticism
Within the book, Tsipras concludes how his former ally demonstrated himself “unfit for an agreement demanding complex and sensitive handling.”
Tsipras also wrote how Varoufakis's aggressive style left him increasingly isolated among peers, endangered the country, while helped hawks who were advocating Grexit.
This retelling of events has been met with fury along with shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
