Within his newly released autobiography, titled Ithaki, the ex- premier Alexis Tsipras spares no criticism as he revisits that chaotic period during Greece's financial crisis.
A Controversial Appointment
As per Tsipras's recollections, he selected that maverick economist Varoufakis as his finance minister largely due to the latter's global profile and his highly compelling skills as a communicator.
“He was, actually, more of a personality rather than an economist,” recalled Tsipras.
Conflicting Agendas
The former leader suggests how Varoufakis had a personal agenda which included advancing Varoufakis's publications as well as experimenting with his own theories on Greece rather than truly advocating the country's economic stability.
Tsipras explained how the negotiations to prevent bankruptcy were “not just a way to secure improved terms for Greece. They became a test, an historic opportunity to demonstrate the truth of his ideas.”
High-Stakes Negotiations
Amid tense negotiations, Greece found itself dangerously close to exiting the single currency area.
At stake was both the country's future but also the punishing austerity measures demanded in exchange for bailout funds from foreign lenders.
Unsuccessful Alternatives
Efforts to secure financing elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Helping Greece was equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed his Greek counterpart in Moscow.
Referendum and Reversal
In July 2015, the excoriating bailout terms were put to a public vote, an action that threw Europe into further existential crisis.
Even though the referendum was carried decisively by those who opposed the cuts, the prime minister had little option but to ignore the result then negotiate a rescue deal with foreign lenders that turned out to be even harsher.
Final Straw
The ex-PM claimed how he started questioning his finance minister quite early on.
“Varoufakis was the face of negotiation, the man who attracted media attention, who appeared on the front pages of publications the world over … he gave the impression he relished the spotlight.”
After Varoufakis outlined a contingency plan involving creating a secondary currency and issuing vouchers to pensioners, the leader said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself to be “unfit for an agreement demanding complex and delicate management.”
He further wrote how his confrontational style left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were advocating a Greek exit from the euro.
The retelling of events has been met with fury and stunned disbelief in some quarters, whereas the former minister has so far kept a deafening silence regarding these claims.
