In a newly released autobiography, named Ithaki, the ex- premier Alexis Tsipras pulls no punches as he reflects on that turbulent era during Greece's economic turmoil.
A Controversial Appointment
In Tsipras's version, he selected the maverick economist Varoufakis as his finance minister largely because of his international reputation along with his very persuasive abilities as a public orator.
“He was, actually, more like a star rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own motives that involved promoting Varoufakis's publications and testing out his own game theories on Greece instead of truly advocating the country's financial survival.
Tsipras noted how the negotiations to stave off bankruptcy were “not only a way to secure improved terms for the country. They were a test, an historic opportunity to prove the validity of his ideas.”
Critical Negotiations
Amid tense negotiations, the country came dangerously close to exiting the single currency area.
On the line lay not only Greece's destiny but also the severe cutbacks demanded in return for rescue loans by foreign lenders.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate plea to Russia to buy Greek bonds, were rejected.
Helping the indebted country was equivalent to tossing cash into the garbage, Putin reportedly informed Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were put to a public vote, an action that threw the EU into further crisis of identity.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to ignore the result and negotiate a rescue deal with foreign lenders which proved to be more severe.
Breaking Point
The ex-PM claimed how he started questioning his finance minister relatively soon.
“He was the face of negotiation, the man who attracted media attention, who graced the covers of magazines globally … he gave the impression he was enjoying his new role.”
After the minister outlined a contingency plan involving establishing a parallel currency as well as distributing vouchers to pensioners, the leader said he realised that it was the end questioning him: “Are you serious?”
Enduring Criticism
Within the memoir, the author concludes how his former ally demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
Tsipras also wrote that Varoufakis's aggressive approach made him more and more alone among peers, put Greece at risk, while helped hardliners who were advocating Grexit.
The retelling of events has been met with fury along with shock in some quarters, while the former minister has maintained a deafening silence regarding these claims.
