In a freshly published personal account, named Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the chaotic period of Greece's debt drama.
A Controversial Appointment
According to Tsipras's recollections, he appointed that unorthodox academic Varoufakis as his treasury head mainly due to his international reputation along with Varoufakis's highly compelling abilities as a communicator.
“In reality, he was, truthfully, more of a star rather than an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras claims that his finance chief possessed a personal motives that involved advancing his books as well as experimenting with his theories using Greece instead of truly advocating the country's economic stability.
Tsipras explained that the negotiations to stave off insolvency were “not just a method to secure a better deal for the country. They were an experiment, an historic opportunity to demonstrate the validity of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also the severe austerity policies demanded in return for rescue loans from international creditors.
Unsuccessful Alternatives
Efforts to find financing elsewhere, such as a desperate plea to Russia to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, the Russian leader reportedly told his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, those punitive bailout terms were put to a popular referendum, a move that threw the EU into deeper crisis of identity.
Even though the referendum was won resoundingly by voters who opposed austerity, the prime minister had little option but to ignore the result then negotiate a bailout package with creditors which proved to be even harsher.
Final Straw
Tsipras claimed 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 front pages of magazines the world over … it seemed he relished his new role.”
After Varoufakis outlined a contingency plan that included establishing a secondary currency as well as distributing coupons to pensioners, Tsipras said he realised that it was game over and asked him: “Is this for real?”
Lasting Rebuke
In the book, Tsipras concludes that his former ally demonstrated himself to be “unfit for an agreement demanding intricate and sensitive management.”
He further wrote how his confrontational approach left him more and more alone among peers, endangered the country, and helped hawks who were advocating Grexit.
This retelling of events has been met with anger along with shock in some quarters, whereas Varoufakis has maintained a conspicuous quiet on the matter.
