Within his newly released personal account, titled Ithaki, the ex- premier Alexis Tsipras pulls no punches as he examines that chaotic period of Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's account, Tsipras appointed that unorthodox economist Varoufakis as his treasury head mainly due to his global profile and Varoufakis's highly compelling skills as a speaker.
“In reality, he was, in reality, more like a star rather than an economist,” wrote the 51-year-old.
Conflicting Priorities
Tsipras suggests how his finance chief possessed his own motives which included promoting Varoufakis's books and experimenting with his own economic models using Greece instead of truly fighting for its financial survival.
Tsipras explained how the discussions to avoid insolvency became “not just a way to secure improved terms for the country. They were a test, an historic chance to prove the truth of Varoufakis's economic theories.”
High-Stakes Talks
During tense discussions, the country came dangerously close to leaving the eurozone.
At stake was not only the country's future and those severe cutbacks demanded in return for rescue loans from foreign lenders.
Failed Options
Efforts to find funds elsewhere, such as a desperate appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting Greece would be equivalent to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum and U-Turn
In July 2015, the excoriating bailout terms were put to a public vote, an action that plunged the EU into a further crisis of identity.
Although the referendum was won decisively by voters against austerity, Tsipras had little option but to ignore the result and negotiate a bailout package with creditors which turned out to be even harsher.
Final Straw
The ex-PM revealed that he began to doubt Varoufakis relatively soon.
“He was the public image of negotiation, the figure who attracted publicity, who appeared on the covers of magazines globally … he gave the impression he relished his new role.”
After the minister proposed a backup strategy that included establishing a parallel currency as well as distributing vouchers to retirees, the leader said he realised it was the end and asked Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, Tsipras asserts how his former ally demonstrated himself to be “unfit for a deal that required intricate and sensitive handling.”
He further wrote how Varoufakis's aggressive approach left him more and more alone with colleagues, put Greece at risk, and assisted hawks that were advocating Grexit.
The retelling of events has been met with anger and stunned disbelief among certain groups, while the former minister has kept a deafening silence regarding these claims.
