In a newly released autobiography, called Ithaki, the former leader Alexis Tsipras does not hold back as he revisits that turbulent era during Greece's economic turmoil.
A Controversial Appointment
In the ex-PM's version, he chose that maverick academic Varoufakis to be his treasury head largely due to the latter's worldwide fame and his very persuasive skills when it came to communicator.
“He was, in reality, more of a personality and less of an economist,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges that Varoufakis had his own motives which included advancing his books as well as testing out his own economic models using the nation rather than truly advocating its financial survival.
Tsipras explained that the discussions to avoid insolvency were “not just a way to secure improved terms for Greece. They were a test, an historic opportunity to prove the validity of his ideas.”
Critical Talks
Amid volatile discussions, the country found itself perilously on the brink of leaving the eurozone.
At stake was not only Greece's destiny but also the harsh cutbacks required in exchange for rescue loans from international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, such as an urgent plea to the Kremlin to purchase Greek bonds, were rejected.
Assisting the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, the punitive bailout terms were subjected to a popular referendum, an action which plunged Europe into deeper crisis of identity.
Although the vote was won resoundingly by those against austerity, the prime minister had little option to ignore the result then agree to a rescue deal with creditors that proved to be even harsher.
Breaking Point
The ex-PM claimed how he began to doubt his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a contingency plan that included establishing a secondary currency as well as distributing vouchers to retirees, Tsipras said he realised that it was the end questioning Varoufakis: “Can you be serious?”
Enduring Criticism
In the book, the author asserts how his former ally had proved himself “unsuitable for an agreement demanding intricate and delicate management.”
He further claimed that Varoufakis's confrontational style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of events has been met with fury along with shock in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
