Within his freshly published memoir, called Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on that turbulent era during Greece's debt drama.
A Controversial Choice
In the ex-PM's recollections, Tsipras selected the maverick economist Varoufakis to be the treasury head largely because of the latter's worldwide fame along with Varoufakis's highly compelling skills as a speaker.
“In reality, he was, in reality, more of a star rather than an economic expert,” stated the 51-year-old.
Clashing Agendas
The former leader suggests how Varoufakis had a personal motives which included promoting Varoufakis's publications and testing out his own game theories using Greece rather than truly advocating the country's financial survival.
Tsipras explained that the negotiations to avoid insolvency became “not just a way of achieving a better deal for the country. They became a test, a monumental chance to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came perilously on the brink of exiting the single currency area.
On the line lay not only the country's destiny and those punishing austerity policies required in exchange for bailout funds by international creditors.
Unsuccessful Alternatives
Efforts to find funds from other sources, such as a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece would be tantamount to tossing cash into the garbage, the Russian leader is reputed to have informed Tsipras in Moscow.
Referendum and U-Turn
That summer, those punitive conditions were put to a popular referendum, a move which threw Europe into further crisis of identity.
Even though the vote was carried decisively by those who opposed the cuts, the prime minister had little option to reject its outcome then negotiate a bailout package from foreign lenders that proved to be tougher.
Final Straw
Tsipras revealed that he began to doubt Varoufakis relatively soon.
“He was the face of the talks, the man who attracted media attention, who graced the covers of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis outlined a backup strategy that included establishing a parallel currency and issuing vouchers to retirees, the leader knew that it was the end and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, the author concludes that Varoufakis demonstrated himself to be “unfit for a deal demanding intricate and delicate handling.”
Tsipras further claimed that his confrontational style left him increasingly isolated among peers, endangered the country, while assisted hardliners who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury along with shock among certain groups, whereas Varoufakis has so far kept a deafening silence on the matter.
