In a newly released autobiography, called Ithaki, the ex- prime minister Alexis Tsipras pulls no punches while he revisits the chaotic era of Greece's financial crisis.
A Controversial Appointment
In Tsipras's recollections, Tsipras appointed that maverick academic Varoufakis to be his finance minister mainly due to the latter's worldwide fame and Varoufakis's very persuasive skills as a speaker.
“In reality, he was, in reality, more like a personality rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
Tsipras suggests that Varoufakis had his own agenda which included promoting his books and testing out his own theories on Greece rather than genuinely advocating its financial survival.
Tsipras wrote that the talks to prevent insolvency were “not just a method of achieving a better deal for the country. They became an experiment, a monumental chance to prove the truth of his ideas.”
Critical Talks
During volatile negotiations, the country came perilously on the brink of exiting the single currency area.
At stake lay both Greece's destiny but also the harsh cutbacks required in exchange for rescue loans from foreign lenders.
Unsuccessful Options
Efforts to secure funds elsewhere, such as a desperate appeal to Russia to buy Greek bonds, were rejected.
Assisting the indebted country was equivalent to tossing cash in the trash-can, Putin reportedly informed his Greek counterpart in Moscow.
Referendum and U-Turn
In July 2015, the punitive bailout terms were put to a popular referendum, an action which plunged the EU into deeper existential crisis.
Even though the referendum was carried resoundingly by those who opposed austerity, Tsipras was forced to ignore the result and negotiate a rescue deal from foreign lenders which turned out to be more severe.
Final Straw
The ex-PM revealed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the figure who attracted publicity, who graced the covers of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis proposed a contingency plan that included creating a parallel currency as well as distributing vouchers to retirees, the leader knew that it was the end questioning Varoufakis: “Is this for real?”
Lasting Rebuke
In the memoir, the author concludes that his former ally had proved himself “unfit for an agreement demanding intricate and delicate management.”
He also claimed that his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and helped hardliners who were pushing for Grexit.
This retelling of history has been met with fury and stunned disbelief among certain groups, whereas the former minister has so far kept a deafening silence regarding these claims.
