In a newly released memoir, named Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he examines that turbulent era during Greece's economic turmoil.
An Unconventional Appointment
As per the ex-PM's recollections, he chose that unorthodox academic Varoufakis as the treasury head largely due to the latter's global profile and Varoufakis's highly compelling skills as a communicator.
“He was, truthfully, more like a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests how his finance chief possessed a personal agenda which involved advancing Varoufakis's books as well as experimenting with his own theories using Greece rather than truly fighting for the country's economic stability.
He explained that those talks to prevent insolvency became “not only a method of achieving improved terms for the country. They were a test, an historic chance to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
During volatile negotiations, the country came dangerously on the brink of leaving the eurozone.
On the line was both Greece's destiny and the punishing cutbacks demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Efforts to find funds elsewhere, including a desperate appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to tossing cash into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Public Vote and Reversal
In July 2015, those excoriating conditions were put to a popular referendum, an action that threw the EU into a deeper existential crisis.
Although the vote was carried decisively by voters against the cuts, Tsipras was forced to reject its outcome and agree to a bailout package from creditors which turned out to be tougher.
Final Straw
Tsipras claimed that he started questioning his finance minister relatively soon.
“Varoufakis was the public image of negotiation, the figure who drew media attention, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
When the minister proposed a backup strategy involving creating a parallel currency and issuing coupons to pensioners, the leader said he realised it was the end and asked Varoufakis: “Are you serious?”
Enduring Rebuke
In the book, the author asserts that Varoufakis had proved himself “unfit for a deal demanding intricate and sensitive handling.”
Tsipras further wrote how Varoufakis's aggressive style made him more and more alone among peers, endangered the country, and helped hardliners who were pushing for Grexit.
The retelling of history has provoked fury and stunned disbelief among certain groups, while Varoufakis has kept a conspicuous quiet on the matter.
