Within his recently unveiled autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches as he examines that turbulent period during Greece's debt drama.
A Controversial Appointment
According to the ex-PM's version, he selected that maverick economist Varoufakis to be his treasury head largely due to the latter's global profile along with his “extremely attractive” skills as a public orator.
“In reality, he was, truthfully, more of a celebrity and less of an economic expert,” recalled Tsipras.
Conflicting Agendas
Tsipras suggests how his finance chief had a personal agenda that included advancing his publications and experimenting with his own economic models on Greece rather than truly advocating its economic stability.
He noted that those talks to avoid bankruptcy were “not only a way of achieving a better deal for the country. They became a test, a monumental opportunity to demonstrate the validity of Varoufakis's theories.”
Critical Talks
During volatile negotiations, the country found itself perilously close to exiting the single currency area.
At stake lay both Greece's future but also those punishing austerity policies demanded in return for bailout funds by foreign lenders.
Unsuccessful Alternatives
Efforts to find financing from other sources, including an urgent appeal to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country was tantamount to throwing money into the garbage, Putin reportedly told his Greek counterpart in Moscow.
Referendum Followed by Reversal
That summer, those harsh conditions were put to a popular referendum, an action which threw Europe into deeper existential crisis.
Even though the vote was carried decisively by those who opposed the cuts, Tsipras had little option to reject its outcome then negotiate a bailout package from foreign lenders which turned out to be tougher.
Final Straw
The ex-PM claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of negotiation, the figure who attracted publicity, who appeared on the covers of publications globally … it seemed he relished his new role.”
After Varoufakis proposed a backup strategy involving creating a parallel currency as well as issuing coupons to pensioners, Tsipras said he realised it was game over questioning Varoufakis: “Are you serious?”
Enduring Criticism
In the memoir, Tsipras asserts how Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
Tsipras also claimed that Varoufakis's aggressive style made him increasingly isolated with colleagues, endangered the country, while helped hawks who were pushing for a Greek exit from the euro.
The retelling of history has provoked fury along with shock among certain groups, while the former minister has so far kept a deafening silence regarding these claims.
