In a newly released autobiography, named Ithaki, the former prime minister Alexis Tsipras pulls no punches as he examines that chaotic era of Greece's economic turmoil.
An Unconventional Choice
According to the ex-PM's recollections, Tsipras chose the unorthodox academic Varoufakis as the treasury head primarily due to his global profile and his highly compelling skills as a public orator.
“In reality, he was, actually, more of a personality and less of an economist,” stated Tsipras.
Clashing Agendas
Tsipras suggests how Varoufakis possessed his own motives which included promoting Varoufakis's publications as well as testing out his theories on Greece rather than genuinely fighting for its financial survival.
He noted that the talks to prevent bankruptcy became “not just a way of achieving improved terms for Greece. They were a test, an historic chance to prove the truth of his theories.”
High-Stakes Negotiations
Amid tense discussions, the country came perilously on the brink of leaving the single currency area.
On the line lay not only the country's destiny but also the harsh austerity policies demanded in return for bailout funds by international creditors.
Failed Options
Efforts to secure financing elsewhere, including a desperate appeal to Russia to buy Greek bonds, went unanswered.
Helping Greece would be tantamount to tossing cash in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote Followed by U-Turn
That summer, the excoriating conditions were subjected to a popular referendum, an action which threw Europe into deeper existential crisis.
Even though the referendum was won resoundingly by those who opposed austerity, the prime minister had little option to reject its outcome and negotiate a bailout package with foreign lenders that proved to be more severe.
Final Straw
The ex-PM revealed how he began to doubt his finance minister quite early on.
“He was the public image of negotiation, the man who attracted media attention, who appeared on the front pages of magazines the world over … he gave the impression he relished his new role.”
When Varoufakis proposed a backup strategy involving creating a secondary currency as well as issuing vouchers to pensioners, Tsipras knew it was game over questioning Varoufakis: “Is this for real?”
Lasting Criticism
In the book, the author asserts that Varoufakis had proved himself to be “unsuitable for a deal demanding intricate and delicate management.”
He also claimed how his aggressive style made him more and more alone among peers, put Greece at risk, while assisted hawks who were pushing for a Greek exit from the euro.
This account of history has provoked fury along with stunned disbelief in some quarters, whereas Varoufakis has so far maintained a deafening silence regarding these claims.
