In a freshly published autobiography, named Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the chaotic period during Greece's financial crisis.
An Unconventional Appointment
According to Tsipras's recollections, he selected the maverick academic Varoufakis to be his treasury head largely due to his international reputation and his very persuasive skills when it came to public orator.
“He was, actually, more like a star and less of an economist,” stated the 51-year-old.
Clashing Agendas
The former leader claims how his finance chief possessed his own motives which involved promoting Varoufakis's publications as well as experimenting with his game theories on Greece rather than truly fighting for its financial survival.
He noted how the negotiations to avoid insolvency became “not just a way of achieving improved terms for the country. They became a test, an historic opportunity to prove the truth of his theories.”
High-Stakes Talks
During volatile discussions, the country found itself dangerously on the brink of exiting the single currency area.
At stake was not only Greece's destiny and those punishing austerity measures demanded in return for financial aid from foreign lenders.
Unsuccessful Options
Efforts to secure funds from other sources, such as an urgent plea to Russia to buy Greek government bonds, were rejected.
Helping the indebted country was tantamount to throwing money into the garbage, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by U-Turn
That summer, the excoriating bailout terms were subjected to a popular referendum, an action that threw Europe into a further existential crisis.
Even though the vote was won resoundingly by those who opposed austerity, Tsipras was forced but to reject its outcome then negotiate a bailout package from creditors that proved to be more severe.
Final Straw
Tsipras claimed how he started questioning Varoufakis relatively soon.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
After Varoufakis proposed a backup strategy that included creating a secondary currency and issuing vouchers to retirees, the leader said he realised it was the end questioning Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding complex and sensitive handling.”
He further claimed how his aggressive approach made him more and more alone with colleagues, endangered the country, while assisted hawks that were advocating Grexit.
This retelling of events has been met with fury along with stunned disbelief in some quarters, whereas the former minister has so far kept a conspicuous quiet on the matter.
