In a freshly published memoir, titled Ithaki, the former prime minister Alexis Tsipras spares no criticism while he examines the turbulent era of Greece's financial crisis.
An Unconventional Choice
According to Tsipras's version, he chose the maverick academic Varoufakis to be the treasury head primarily due to his worldwide fame and Varoufakis's very persuasive abilities as a speaker.
“In reality, he was, in reality, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader claims how his finance chief had his own motives which involved advancing his publications as well as testing out his game theories using Greece rather than genuinely fighting for the country's economic stability.
Tsipras explained how those negotiations to avoid bankruptcy were “not just a method of achieving improved terms for the country. They were an experiment, a monumental chance to demonstrate the validity of Varoufakis's theories.”
Critical Negotiations
During tense discussions, the country found itself perilously close to leaving the single currency area.
On the line was both the country's future and those punishing austerity measures demanded in return for rescue loans by foreign lenders.
Failed Options
Efforts to secure financing from other sources, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Helping the indebted country would be equivalent to throwing money in the trash-can, Putin is reputed to have told Tsipras during their meeting.
Referendum Followed by U-Turn
In July 2015, those harsh bailout terms were put to a public vote, a move which threw the EU into deeper existential crisis.
Although the vote was won resoundingly by those who opposed the cuts, the prime minister was forced to ignore the result and agree to a rescue deal from creditors which turned out to be tougher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted publicity, who appeared on the front pages of magazines globally … he gave the impression he was enjoying the spotlight.”
After Varoufakis outlined a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, the leader knew that it was game over and asked him: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes how his former ally demonstrated himself to be “unsuitable for an agreement demanding complex and delicate handling.”
He also claimed how Varoufakis's confrontational style made him increasingly isolated among peers, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
This account of history has provoked fury and shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
