Within his recently unveiled memoir, named Ithaki, the former premier Alexis Tsipras pulls no punches while he examines the chaotic era during Greece's financial crisis.
An Unconventional Choice
According to Tsipras's version, he chose the maverick economist Varoufakis as his treasury head largely because of the latter's global profile along with Varoufakis's very persuasive skills as a communicator.
“He was, in reality, more of a celebrity rather than an economist,” recalled the 51-year-old.
Conflicting Agendas
The former leader claims how his finance chief possessed a personal agenda which involved promoting his books and experimenting with his own theories using the nation rather than genuinely advocating the country's economic stability.
He wrote that the talks to prevent bankruptcy were “not only a way to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece came dangerously on the brink of leaving the single currency area.
At stake lay both Greece's future but also those harsh austerity policies required in exchange for rescue loans from international creditors.
Unsuccessful Options
Attempts to secure financing from other sources, such as a desperate appeal to Russia to purchase Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin is reputed to have told Tsipras in Moscow.
Public Vote and U-Turn
In July 2015, the harsh conditions were subjected to a public vote, a move which plunged the EU into further crisis of identity.
Even though the vote was carried decisively by those against the cuts, the prime minister had little option to reject its outcome then agree to a rescue deal with creditors that turned out to be more severe.
Final Straw
Tsipras claimed that he started questioning Varoufakis quite early on.
“He was the public image of the talks, the figure who drew media attention, who graced the front pages of publications globally … it seemed he was enjoying the spotlight.”
After the minister outlined a backup strategy involving establishing a parallel currency as well as distributing coupons to retirees, Tsipras said he realised that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
In the book, the author concludes how his former ally demonstrated himself to be “unsuitable for a deal demanding complex and sensitive handling.”
Tsipras further wrote how Varoufakis's confrontational style left him increasingly isolated among peers, put Greece at risk, and helped hawks that were pushing for Grexit.
This retelling of history has been met with anger along with shock among certain groups, whereas Varoufakis has maintained a conspicuous quiet regarding these claims.
