In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines that chaotic period of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras chose that maverick economist Varoufakis as the finance minister mainly due to the latter's international reputation along with Varoufakis's very persuasive abilities when it came to public orator.
“He was, truthfully, more of a celebrity and less of an economist,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how Varoufakis possessed a personal motives which included promoting Varoufakis's publications as well as testing out his economic models using the nation rather than truly fighting for its economic stability.
Tsipras explained how those talks to stave off insolvency were “not only a method of achieving improved terms for the country. They were a test, a monumental chance to prove the validity of Varoufakis's ideas.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to exiting the single currency area.
On the line lay not only the country's destiny and the harsh austerity measures required in return for bailout funds from foreign lenders.
Failed Alternatives
Attempts to find financing elsewhere, such as an urgent appeal to the Kremlin to buy Greek bonds, fell on stony ground.
Helping Greece was equivalent to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the harsh conditions were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Even though the vote was carried decisively by those who opposed austerity, the prime minister had little option to reject its outcome then agree to a bailout package with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of the talks, the figure who drew media attention, who appeared on the covers of publications the world over … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency as well as issuing vouchers to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, the author asserts that his former ally had proved himself to be “unsuitable for a deal demanding intricate and delicate handling.”
He also wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, put Greece at risk, while helped hawks that were advocating a Greek exit from the euro.
This account of history has provoked fury along with stunned disbelief in some quarters, while Varoufakis has so far kept a deafening silence on the matter.
