Within his freshly published autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches while he reflects on that chaotic era of Greece's financial crisis.
A Controversial Appointment
According to Tsipras's account, he selected the unorthodox economist Varoufakis to be his treasury head primarily due to the latter's international reputation along with his “extremely attractive” skills when it came to communicator.
“He was, actually, more of a celebrity rather than an economist,” recalled Tsipras.
Clashing Agendas
The former leader suggests that Varoufakis had his own motives which included advancing his books as well as testing out his game theories using the nation instead of genuinely advocating its economic stability.
Tsipras wrote how the negotiations to prevent insolvency were “not just a method of achieving improved terms for Greece. They were a test, an historic chance to prove the validity of Varoufakis's economic theories.”
Critical Talks
During tense negotiations, the country found itself perilously close to exiting the single currency area.
On the line was not only Greece's future but also those harsh austerity policies required in exchange for rescue loans by foreign lenders.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including an urgent appeal to the Kremlin to buy Greek government bonds, were rejected.
Assisting the indebted country was tantamount to tossing cash into the garbage, Putin reportedly informed his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, the punitive conditions were put to a popular referendum, an action which plunged the EU into a further crisis of identity.
Even though the referendum was carried resoundingly by voters who opposed austerity, the prime minister had little option to reject its outcome and agree to a rescue deal with foreign lenders that turned out to be tougher.
Final Straw
Tsipras revealed how he began to doubt his finance minister relatively soon.
“He was the public image of negotiation, the man who attracted publicity, who appeared on the front pages of magazines the world over … he gave the impression he was enjoying the spotlight.”
When the minister outlined a backup strategy involving establishing a secondary currency as well as distributing coupons to retirees, the leader knew it was game over questioning him: “Can you be serious?”
Enduring Criticism
In the book, the author concludes that his former ally demonstrated himself “unsuitable for an agreement demanding complex and sensitive handling.”
Tsipras further claimed that Varoufakis's aggressive approach left him increasingly isolated with colleagues, endangered the country, while helped hardliners who were pushing for a Greek exit from the euro.
The retelling of events has provoked fury and stunned disbelief in some quarters, whereas Varoufakis has so far kept a deafening silence on the matter.
