Within his newly released memoir, titled Ithaki, the former premier Alexis Tsipras spares no criticism as he examines that turbulent era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's account, Tsipras appointed the unorthodox academic Varoufakis to be his treasury head largely because of the latter's worldwide fame and his highly compelling skills as a communicator.
“In reality, he was, in reality, more of a star rather than an economic expert,” wrote the 51-year-old.
Conflicting Priorities
The former leader alleges how Varoufakis had his own agenda which involved advancing his books and experimenting with his own economic models using the nation instead of genuinely advocating its economic stability.
Tsipras explained that the discussions to avoid insolvency became “not only a way of achieving improved terms for the country. They were an experiment, an historic chance to prove the validity of his ideas.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself perilously on the brink of leaving the single currency area.
On the line was both Greece's destiny and those harsh cutbacks required in exchange for bailout funds from foreign lenders.
Failed Options
Efforts to find financing from other sources, such as an urgent plea to Russia to buy Greek bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money in the trash-can, Putin reportedly told his Greek counterpart during their meeting.
Referendum Followed by U-Turn
That summer, those excoriating bailout terms were put to a public vote, an action which threw Europe into a further existential crisis.
Although the referendum was carried decisively by those against the cuts, Tsipras was forced but to ignore the result and agree to a rescue deal from creditors that turned out to be more severe.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who drew publicity, who appeared on the covers of publications globally … it seemed he relished the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a parallel currency and issuing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
Within the memoir, Tsipras concludes that Varoufakis demonstrated himself to be “unfit for an agreement that required intricate and sensitive handling.”
Tsipras further claimed that Varoufakis's confrontational approach made him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating a Greek exit from the euro.
This retelling of history has been met with anger and shock in some quarters, whereas the former minister has so far kept a deafening silence on the matter.
