Within his newly released memoir, titled Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that turbulent era of Greece's financial crisis.
A Controversial Appointment
As per the ex-PM's version, he appointed that unorthodox economist Varoufakis as his finance minister mainly due to his worldwide fame along with Varoufakis's very persuasive skills as a public orator.
“He was, actually, more of a personality rather than an economic expert,” recalled the 51-year-old.
Conflicting Priorities
The former leader alleges that his finance chief possessed his own motives which involved advancing Varoufakis's publications as well as testing out his game theories on Greece instead of truly advocating the country's financial survival.
He wrote how the discussions to prevent insolvency became “not just a method of achieving improved terms for the country. They were an experiment, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Talks
Amid tense negotiations, Greece came perilously close to leaving the single currency area.
On the line was both the country's future but also the harsh austerity policies demanded in return for bailout funds from foreign lenders.
Unsuccessful Alternatives
Attempts to find funds from other sources, such as an urgent plea to the Kremlin 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 his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, those harsh bailout terms were put to a public vote, a move that plunged Europe into further existential crisis.
Even though the referendum was carried resoundingly by voters who opposed austerity, Tsipras had little option but to ignore the result and agree to a rescue deal from foreign lenders which turned out to be tougher.
Breaking Point
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“He was the face of the talks, the figure who attracted publicity, who graced the front pages of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and distributing vouchers to retirees, the leader said he realised that it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
Within the memoir, Tsipras concludes how his former ally demonstrated himself “unsuitable for a deal demanding complex and sensitive handling.”
He further wrote that Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, and helped hardliners who were advocating Grexit.
The account of events has provoked fury along with shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet regarding these claims.
