Within his recently unveiled autobiography, titled Ithaki, the former leader Alexis Tsipras spares no criticism as he examines that chaotic era during Greece's economic turmoil.
A Controversial Choice
According to the ex-PM's recollections, he selected the unorthodox academic Varoufakis as the treasury head largely because of his international reputation along with his very persuasive skills as a speaker.
“In reality, he was, actually, more of a celebrity and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras claims that Varoufakis had his own motives which included promoting Varoufakis's publications and experimenting with his economic models using the nation rather than truly advocating its financial survival.
He noted that those negotiations to avoid insolvency became “not only a method to secure a better deal for the country. They were an experiment, a monumental chance to prove the truth of his ideas.”
High-Stakes Negotiations
During tense discussions, Greece found itself perilously close to leaving the single currency area.
At stake lay both Greece's future and the severe cutbacks required in exchange for financial aid by foreign lenders.
Failed Alternatives
Efforts to find funds elsewhere, such as a desperate plea to the Kremlin to buy Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Referendum Followed by U-Turn
That summer, the harsh bailout terms were subjected to a public vote, an action that plunged the EU into deeper existential crisis.
Even though the vote was won resoundingly by those who opposed the cuts, the prime minister was forced but to reject its outcome then agree to a bailout package from creditors which turned out to be tougher.
Final Straw
Tsipras revealed that he began to doubt his finance minister relatively soon.
“Varoufakis was the public image of the talks, the man who drew publicity, who graced the covers of publications globally … he gave the impression he was enjoying the spotlight.”
When Varoufakis proposed a contingency plan that included establishing a parallel currency as well as distributing coupons to pensioners, the leader said he realised that it was game over and asked him: “Can you be serious?”
Lasting Rebuke
Within the book, Tsipras concludes that Varoufakis demonstrated himself “unsuitable for an agreement that required intricate and sensitive handling.”
He further claimed how his confrontational style left him more and more alone with colleagues, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This retelling of history has provoked anger along with shock in some quarters, while Varoufakis has so far maintained a deafening silence on the matter.
