Within his freshly published autobiography, titled Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's debt drama.
An Unconventional Appointment
According to Tsipras's version, Tsipras appointed the unorthodox economist Varoufakis as his finance minister primarily due to the latter's international reputation and Varoufakis's very persuasive abilities when it came to public orator.
“He was, actually, more like a celebrity and less of an economic expert,” stated the 51-year-old.
Clashing Priorities
Tsipras suggests that his finance chief possessed his own motives which involved promoting his books and experimenting with his theories using the nation rather than truly fighting for the country's financial survival.
He noted how the negotiations to stave off insolvency became “not only a method to secure improved terms for the country. They were an experiment, a monumental chance to demonstrate the truth of Varoufakis's economic theories.”
High-Stakes Talks
Amid volatile discussions, Greece found itself dangerously on the brink of exiting the single currency area.
At stake lay both Greece's future but also the severe austerity policies required in exchange for financial aid by international creditors.
Failed Options
Efforts to secure funds from other sources, such as an urgent plea to Russia to purchase Greek government bonds, fell on stony ground.
Assisting Greece was equivalent to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the harsh bailout terms were subjected to a popular referendum, a move that threw the EU into deeper existential crisis.
Although the vote was carried resoundingly by voters against austerity, the prime minister was forced to reject its outcome and agree to a rescue deal with creditors that proved to be even harsher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying his new role.”
After Varoufakis outlined a backup strategy involving establishing a parallel currency and issuing coupons to pensioners, the leader knew it was the end questioning him: “Are you serious?”
Lasting Rebuke
In the memoir, Tsipras concludes that Varoufakis had proved himself to be “unsuitable for a deal that required complex and sensitive management.”
He also claimed that Varoufakis's aggressive style left him more and more alone with colleagues, endangered the country, and helped hawks who were advocating a Greek exit from the euro.
This retelling of events has been met with anger and shock in some quarters, while the former minister has kept a conspicuous quiet on the matter.
