In a newly released memoir, named Ithaki, the ex- leader Alexis Tsipras spares no criticism while he revisits that turbulent era during Greece's economic turmoil.
A Controversial Choice
As per the ex-PM's account, Tsipras selected that maverick economist Varoufakis to be his treasury head largely because of his worldwide fame and Varoufakis's highly compelling skills as a public orator.
“He was, actually, more like a star rather than an economist,” wrote Tsipras.
Conflicting Agendas
The former leader alleges that his finance chief possessed his own motives that included advancing his publications as well as testing out his own theories using the nation rather than truly advocating its financial survival.
Tsipras explained that the talks to avoid insolvency were “not only a way of achieving improved terms for the country. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
During rollercoaster negotiations, Greece came dangerously close to leaving the single currency area.
On the line was not only the country's future and those harsh austerity measures required in return for rescue loans from international creditors.
Failed Alternatives
Attempts to secure funds from other sources, including a desperate plea to Russia to purchase Greek government bonds, were rejected.
Helping Greece would be tantamount to throwing money in the trash-can, Putin is reputed to have told his Greek counterpart in Moscow.
Public Vote and Reversal
That summer, the punitive bailout terms were put to a popular referendum, a move that plunged Europe into deeper existential crisis.
Even though the referendum was won resoundingly by voters against austerity, Tsipras had little option to reject its outcome then agree to a rescue deal with creditors that proved to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“He was the public image of negotiation, the man who attracted media attention, who graced the covers of publications globally … he gave the impression he relished his new role.”
After Varoufakis outlined a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was game over questioning him: “Can you be serious?”
Lasting Rebuke
In the book, Tsipras asserts how Varoufakis had proved himself to be “unfit for a deal that required intricate and delicate management.”
Tsipras also wrote how his confrontational style left him increasingly isolated among peers, put Greece at risk, while helped hawks who were advocating Grexit.
This retelling of events has provoked fury and stunned disbelief in some quarters, while the former minister has so far maintained a conspicuous quiet on the matter.
