In a newly released memoir, titled Ithaki, the ex- leader Alexis Tsipras spares no criticism as he examines the turbulent period during Greece's economic turmoil.
A Controversial Appointment
According to the ex-PM's recollections, Tsipras appointed that maverick economist Varoufakis to be the finance minister mainly due to the latter's international reputation and Varoufakis's “extremely attractive” skills as a speaker.
“He was, in reality, more of a celebrity rather than an economic expert,” recalled Tsipras.
Clashing Priorities
The former leader alleges how Varoufakis had his own motives that involved promoting Varoufakis's publications as well as experimenting with his own economic models using Greece rather than truly fighting for its economic stability.
Tsipras noted that those talks to prevent bankruptcy were “not only a method to secure improved terms for Greece. They became a test, an historic opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
During rollercoaster negotiations, the country found itself dangerously close to exiting the eurozone.
At stake lay not only Greece's future but also the harsh cutbacks required in return for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, such as an urgent appeal to Russia to buy Greek bonds, were rejected.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly informed Tsipras in Moscow.
Public Vote Followed by U-Turn
In July 2015, those punitive conditions were put to a popular referendum, a move which threw the EU into further crisis of identity.
Even though the vote was won resoundingly by voters against austerity, Tsipras was forced but to ignore the result and negotiate a rescue deal with creditors that turned out to be more severe.
Final Straw
Tsipras revealed that he started questioning his finance minister relatively soon.
“Varoufakis was the face of the talks, the man who attracted media attention, who graced the front pages of magazines the world over … it seemed he relished the spotlight.”
When the minister proposed a backup strategy that included creating a parallel currency and issuing coupons to retirees, the leader knew it was game over questioning Varoufakis: “Are you serious?”
Lasting Criticism
Within the book, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement demanding complex and sensitive management.”
Tsipras also claimed how Varoufakis's aggressive style made him increasingly isolated with colleagues, put Greece at risk, while assisted hardliners that were pushing for a Greek exit from the euro.
The account of events has been met with fury and stunned disbelief among certain groups, while Varoufakis has maintained a conspicuous quiet regarding these claims.
