In a freshly published autobiography, called Ithaki, the ex- premier Alexis Tsipras pulls no punches while he reflects on that chaotic period during Greece's debt drama.
A Controversial Choice
In the ex-PM's account, Tsipras appointed that maverick economist Varoufakis as his treasury head primarily because of the latter's global profile along with his “extremely attractive” abilities when it came to speaker.
“He was, truthfully, more like a personality rather than an economist,” recalled the 51-year-old.
Clashing Agendas
Tsipras alleges that his finance chief possessed a personal agenda that involved promoting his publications as well as testing out his own theories on the nation rather than genuinely advocating the country's financial survival.
Tsipras noted how those negotiations to prevent insolvency were “not just a method to secure improved terms for Greece. They became an experiment, an historic opportunity to demonstrate the validity of Varoufakis's economic theories.”
High-Stakes Negotiations
During tense discussions, Greece came dangerously on the brink of leaving the eurozone.
At stake lay both Greece's future but also the harsh austerity measures demanded in return for bailout funds by foreign lenders.
Failed Options
Efforts to find funds from other sources, such as a desperate plea to Russia to buy Greek government bonds, were rejected.
Helping Greece was tantamount to throwing money in the trash-can, the Russian leader reportedly informed his Greek counterpart in Moscow.
Referendum and Reversal
That summer, those punitive bailout terms were subjected to a public vote, an action that plunged the EU into deeper existential crisis.
Although the referendum was won decisively by voters who opposed the cuts, Tsipras was forced to ignore the result then agree to a bailout package with foreign lenders that turned out to be tougher.
Final Straw
The ex-PM revealed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who graced the front pages of magazines globally … it seemed he relished the spotlight.”
When Varoufakis proposed a contingency plan involving creating a secondary currency as well as issuing coupons to retirees, Tsipras said he realised that it was the end and asked him: “Is this for real?”
Lasting Criticism
Within the memoir, Tsipras concludes how Varoufakis demonstrated himself to be “unsuitable for a deal that required complex and sensitive handling.”
He also wrote how his aggressive style made him increasingly isolated with colleagues, endangered the country, and assisted hardliners that were pushing for Grexit.
The account of history has provoked fury and shock among certain groups, whereas Varoufakis has maintained a deafening silence regarding these claims.
