In a freshly published memoir, called Ithaki, the former prime minister Alexis Tsipras spares no criticism while he revisits that turbulent period during Greece's debt drama.
A Controversial Appointment
As per Tsipras's recollections, Tsipras appointed that maverick academic Varoufakis as the treasury head mainly because of the latter's international reputation along with his highly compelling skills when it came to public orator.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how Varoufakis possessed his own motives that included advancing Varoufakis's books and testing out his theories on the nation instead of truly advocating the country's financial survival.
He explained that those negotiations to avoid bankruptcy were “not only a method to secure improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's theories.”
High-Stakes Talks
During rollercoaster discussions, the country came perilously close to leaving the single currency area.
On the line was not only Greece's destiny and the punishing cutbacks demanded in exchange for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including a desperate appeal to Russia to purchase Greek bonds, fell on stony ground.
Helping Greece would be equivalent to throwing money into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Public Vote and Reversal
That summer, the excoriating bailout terms were put to a public vote, an action which threw Europe into further existential crisis.
Even though the vote was carried resoundingly by those who opposed austerity, the prime minister had little option but to reject its outcome and agree to a rescue deal with creditors which proved to be even harsher.
Final Straw
Tsipras revealed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After the minister outlined a contingency plan that included establishing a parallel currency and issuing vouchers to retirees, the leader knew that it was game over questioning Varoufakis: “Are you serious?”
Enduring Rebuke
Within the book, Tsipras concludes how Varoufakis had proved himself to be “unfit for a deal that required intricate and sensitive management.”
He further claimed that his aggressive style made him more and more alone with colleagues, put Greece at risk, while helped hardliners who were advocating a Greek exit from the euro.
This account of events has provoked anger along with shock among certain groups, while Varoufakis has maintained a conspicuous quiet on the matter.
