Within his newly released personal account, called Ithaki, the former leader Alexis Tsipras pulls no punches while he revisits that chaotic era during Greece's economic turmoil.
A Controversial Choice
As per Tsipras's recollections, Tsipras chose the unorthodox academic Varoufakis to be his treasury head largely due to the latter's international reputation along with Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, actually, more like a celebrity and less of an economic expert,” recalled Tsipras.
Clashing Priorities
Tsipras claims how Varoufakis had his own motives which included advancing Varoufakis's publications and testing out his economic models on the nation instead of truly advocating the country's economic stability.
He noted that the talks to avoid bankruptcy became “not only a method to secure improved terms for the country. They were a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece came perilously on the brink of exiting the single currency area.
At stake was not only the country's future but also those punishing cutbacks demanded in return for rescue loans by foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent plea to the Kremlin to buy Greek bonds, were rejected.
Helping the indebted country was equivalent to throwing money into the garbage, Putin is reputed to have informed his Greek counterpart during their meeting.
Referendum and U-Turn
In July 2015, those harsh conditions were subjected to a popular referendum, a move which threw the EU into further existential crisis.
Even though the referendum was carried resoundingly by those who opposed the cuts, the prime minister had little option to ignore the result and negotiate a rescue deal from creditors which proved to be tougher.
Final Straw
The ex-PM claimed that he started questioning Varoufakis relatively soon.
“Varoufakis was the face of the talks, the figure who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency and distributing coupons to pensioners, Tsipras said he realised that it was game over and asked Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras concludes how Varoufakis had proved himself “unfit for an agreement demanding intricate and delicate management.”
He also wrote how his confrontational approach left him more and more alone among peers, endangered the country, while helped hardliners that were pushing for a Greek exit from the euro.
The account of history has been met with fury and shock in some quarters, while Varoufakis has maintained a deafening silence regarding these claims.
