In a newly released memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that chaotic era of Greece's financial crisis.
An Unconventional Choice
As per the ex-PM's version, Tsipras chose that unorthodox academic Varoufakis as his treasury head mainly due to his worldwide fame and Varoufakis's “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more like a personality and less of an economic expert,” wrote the 51-year-old.
Conflicting Agendas
The former leader alleges that his finance chief had his own agenda that included promoting his publications and testing out his own game theories on Greece instead of genuinely advocating the country's financial survival.
He explained how those negotiations to avoid insolvency were “not just a way to secure improved terms for the country. They were an experiment, a monumental opportunity to demonstrate the truth of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, Greece found itself perilously close to leaving the single currency area.
At stake was not only Greece's future but also those severe cutbacks required in exchange for financial aid by international creditors.
Unsuccessful Alternatives
Attempts to secure funds elsewhere, including a desperate appeal to Russia to purchase Greek bonds, went unanswered.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those excoriating conditions were put to a public vote, a move that threw the EU into deeper existential crisis.
Even though the vote was won decisively by those against the cuts, the prime minister had little option to reject its outcome and negotiate a rescue deal with creditors which turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the man who drew publicity, who appeared on the front pages of publications globally … he gave the impression he was enjoying the spotlight.”
When the minister proposed a backup strategy involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end questioning him: “Are you serious?”
Lasting Rebuke
Within the book, the author concludes that Varoufakis had proved himself to be “unfit for an agreement demanding complex and sensitive management.”
He further wrote how Varoufakis's aggressive style made him increasingly isolated among peers, put Greece at risk, while assisted hawks who were pushing for Grexit.
The retelling of events has been met with anger and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
