In a freshly published memoir, called Ithaki, the ex- prime minister Alexis Tsipras spares no criticism as he revisits that chaotic era during Greece's debt drama.
An Unconventional Appointment
According to Tsipras's account, he selected the unorthodox academic Varoufakis as his treasury head primarily due to his international reputation and Varoufakis's highly compelling abilities as a speaker.
“He was, actually, more like a celebrity and less of an economic expert,” wrote the 51-year-old.
Clashing Agendas
Tsipras alleges that his finance chief had a personal agenda which included advancing his books as well as experimenting with his theories using Greece rather than truly fighting for the country's economic stability.
Tsipras wrote how the discussions to prevent bankruptcy became “not just a method of achieving a better deal for Greece. They became a test, a monumental opportunity to prove the truth of Varoufakis's economic theories.”
High-Stakes Negotiations
Amid tense negotiations, the country came dangerously on the brink of leaving the single currency area.
At stake lay not only the country's destiny and those severe cutbacks demanded in return for financial aid by international creditors.
Failed Options
Efforts to secure funds elsewhere, including an urgent appeal to Russia to buy Greek government bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum Followed by Reversal
In July 2015, those harsh conditions were subjected to a public vote, a move that threw Europe into a further existential crisis.
Although the vote was carried decisively by voters who opposed austerity, Tsipras had little option to ignore the result then negotiate a rescue deal with foreign lenders that proved to be tougher.
Breaking Point
Tsipras revealed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who drew publicity, who appeared on the covers of publications globally … he gave the impression he was enjoying the spotlight.”
After the minister proposed a contingency plan involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Criticism
In the memoir, Tsipras concludes that Varoufakis had proved himself “unsuitable for an agreement demanding complex and sensitive management.”
He further claimed that his aggressive approach made him increasingly isolated with colleagues, endangered the country, while assisted hardliners who were advocating Grexit.
The retelling of history has provoked anger along with shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
