In a recently unveiled autobiography, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he revisits that chaotic period during Greece's financial crisis.
A Controversial Choice
In the ex-PM's account, he chose the unorthodox academic Varoufakis as the finance minister largely because of his international reputation and his “extremely attractive” abilities as a communicator.
“In reality, he was, truthfully, more like a star rather than an economic expert,” wrote Tsipras.
Conflicting Priorities
Tsipras alleges how Varoufakis had a personal agenda that involved advancing Varoufakis's books and testing out his own game theories using the nation rather than genuinely advocating its economic stability.
He noted how those discussions to stave off insolvency became “not only a method of achieving improved terms for the country. They became a test, an historic opportunity to demonstrate the truth of Varoufakis's ideas.”
High-Stakes Negotiations
During tense discussions, the country came perilously close to exiting the eurozone.
At stake lay not only Greece's future and those severe austerity measures required in exchange for rescue loans from international creditors.
Unsuccessful Options
Efforts to secure financing from other sources, including a desperate appeal to Russia to buy Greek bonds, were rejected.
Helping Greece was tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, those punitive bailout terms were subjected to a public vote, a move that plunged the EU into deeper crisis of identity.
Even though the referendum was carried decisively by voters who opposed austerity, Tsipras had little option to ignore the result and negotiate a bailout package with creditors that turned out to be even harsher.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the face of the talks, the man who attracted media attention, who appeared on the front pages of magazines the world over … it seemed he was enjoying his new role.”
After Varoufakis outlined a backup strategy that included establishing a secondary currency and distributing vouchers to retirees, Tsipras said he realised it was the end and asked Varoufakis: “Is this for real?”
Enduring Rebuke
In the memoir, the author concludes how Varoufakis demonstrated himself “unfit for a deal demanding complex and sensitive management.”
Tsipras also wrote that his confrontational style made him more and more alone with colleagues, endangered the country, and assisted hawks who were pushing for a Greek exit from the euro.
The account of events has been met with anger and shock among certain groups, whereas the former minister has kept a conspicuous quiet on the matter.
