Within his freshly published memoir, called Ithaki, the ex- leader Alexis Tsipras spares no criticism while he examines that turbulent era during Greece's debt drama.
A Controversial Choice
As per Tsipras's recollections, Tsipras appointed the maverick academic Varoufakis as his treasury head mainly because of his international reputation and his “extremely attractive” skills when it came to communicator.
“He was, actually, more of a personality and less of an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader suggests that his finance chief had a personal motives that involved advancing Varoufakis's books as well as experimenting with his economic models using Greece rather than truly fighting for the country's economic stability.
He wrote that those negotiations to stave off bankruptcy became “not just a way to secure improved terms for Greece. They were a test, an historic opportunity to prove the validity of his ideas.”
Critical Negotiations
During volatile negotiations, Greece found itself dangerously on the brink of exiting the single currency area.
At stake lay not only the country's destiny and the severe austerity policies demanded in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the punitive bailout terms were put to a popular referendum, an action which plunged the EU into a further existential crisis.
Although the referendum was carried resoundingly by voters who opposed the cuts, Tsipras was forced but to reject its outcome and negotiate a bailout package with creditors that proved to be even harsher.
Breaking Point
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who drew publicity, who graced the front pages of magazines the world over … he gave the impression he relished the spotlight.”
After the minister outlined a backup strategy involving establishing a secondary currency as well as issuing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Are you serious?”
Lasting Rebuke
In the book, Tsipras asserts that his former ally demonstrated himself “unfit for an agreement demanding complex and sensitive management.”
He further claimed how his confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hardliners who were advocating a Greek exit from the euro.
The retelling of history has provoked fury and shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
