Within his recently unveiled memoir, named Ithaki, the former prime minister Alexis Tsipras does not hold back while he revisits that turbulent era during Greece's debt drama.
An Unconventional Appointment
According to the ex-PM's recollections, he appointed the unorthodox academic Varoufakis to be his finance minister largely due to the latter's international reputation along with his “extremely attractive” abilities as a communicator.
“In reality, he was, actually, more like a celebrity and less of an economist,” recalled Tsipras.
Clashing Agendas
Tsipras claims how Varoufakis possessed a personal motives which involved advancing Varoufakis's books as well as testing out his own game theories using Greece rather than genuinely fighting for the country's financial survival.
Tsipras wrote that those discussions to stave off insolvency were “not only a method to secure a better deal for the country. They became an experiment, an historic opportunity to prove the validity of his economic theories.”
Critical Talks
Amid volatile negotiations, the country came perilously close to leaving the single currency area.
On the line was both the country's future and those punishing austerity policies demanded in exchange for rescue loans from international creditors.
Failed Alternatives
Efforts to secure funds elsewhere, such as an urgent appeal to Russia to purchase Greek government bonds, went unanswered.
Helping Greece was equivalent to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, those harsh bailout terms were put to a popular referendum, a move which plunged the EU into deeper existential crisis.
Even though the vote was won decisively by those who opposed austerity, Tsipras was forced but to reject its outcome and agree to a rescue deal with foreign lenders which turned out to be more severe.
Final Straw
The ex-PM revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of the talks, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he was enjoying his new role.”
When the minister outlined a backup strategy that included establishing a parallel currency as well as issuing vouchers to retirees, the leader said he realised it was the end questioning him: “Can you be serious?”
Enduring Criticism
Within the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for a deal that required intricate and sensitive management.”
Tsipras also claimed that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, and helped hawks that were advocating Grexit.
The account of events has provoked anger and shock in some quarters, whereas the former minister has maintained a conspicuous quiet on the matter.
