Within his newly released memoir, called Ithaki, the former leader Alexis Tsipras spares no criticism as he examines that turbulent era during Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's version, Tsipras appointed that unorthodox economist Varoufakis to be the treasury head mainly due to the latter's international reputation along with his very persuasive skills when it came to public orator.
“In reality, he was, actually, more like a personality and less of an economist,” wrote the 51-year-old.
Clashing Priorities
Tsipras claims how his finance chief had a personal agenda that included advancing his publications and testing out his game theories using Greece instead of truly fighting for its financial survival.
He explained how those discussions to stave off bankruptcy became “not only a method of achieving improved terms for the country. They became an experiment, a monumental opportunity to prove the validity of his economic theories.”
High-Stakes Talks
During tense negotiations, Greece found itself perilously close to exiting the eurozone.
At stake was both Greece's destiny but also the harsh austerity measures demanded in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, including an urgent plea to the Kremlin to buy Greek bonds, went unanswered.
Assisting Greece would be tantamount to tossing cash in the trash-can, the Russian leader reportedly told Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, those punitive bailout terms were put to a popular referendum, an action which threw Europe into a deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option but to ignore the result and agree to a bailout package from foreign lenders that proved to be even harsher.
Breaking Point
The ex-PM revealed how he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted publicity, who graced the front pages of magazines globally … he gave the impression he relished the spotlight.”
After the minister proposed a contingency plan involving creating a secondary currency and distributing vouchers to retirees, Tsipras knew it was the end and asked him: “Are you serious?”
Enduring Rebuke
In the memoir, the author asserts that Varoufakis demonstrated himself “unfit for a deal that required intricate and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him increasingly isolated with colleagues, endangered the country, and helped hawks that were pushing for a Greek exit from the euro.
The account of events has been met with anger and shock among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
