In a freshly published memoir, named Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that chaotic period of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, Tsipras selected that unorthodox academic Varoufakis to be his treasury head largely because of the latter's international reputation along with his very persuasive abilities as a speaker.
“In reality, he was, in reality, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges that Varoufakis had a personal agenda which involved promoting his publications as well as experimenting with his own economic models using the nation instead of truly advocating the country's economic stability.
He explained that the discussions to avoid bankruptcy became “not only a way of achieving a better deal for the country. They were a test, an historic opportunity to prove the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece found itself dangerously close to exiting the eurozone.
At stake was not only Greece's destiny and those severe austerity measures demanded in exchange for rescue loans by foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping the indebted country was equivalent to tossing cash in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, the excoriating conditions were subjected to a popular referendum, an action that threw Europe into a further existential crisis.
Even though the referendum was carried decisively by voters against the cuts, Tsipras had little option but to ignore the result then negotiate a rescue deal with creditors which turned out to be even harsher.
Final Straw
Tsipras claimed how he started questioning his finance minister relatively soon.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the covers of publications the world over … he gave the impression he relished his new role.”
After the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, Tsipras knew that it was the end questioning him: “Can you be serious?”
Enduring Rebuke
Within the memoir, Tsipras asserts how his former ally demonstrated himself to be “unsuitable for an agreement that required complex and sensitive management.”
He also claimed how his aggressive approach left him more and more alone among peers, endangered the country, while helped hawks that were pushing for a Greek exit from the euro.
This retelling of history has been met with anger and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
