Within his freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras does not hold back while he reflects on the chaotic period of Greece's debt drama.
A Controversial Appointment
As per Tsipras's account, he appointed that maverick economist Varoufakis to be his treasury head largely because of his worldwide fame along with Varoufakis's “extremely attractive” abilities as a speaker.
“He was, actually, more of a personality and less of an economic expert,” stated the 51-year-old.
Conflicting Priorities
Tsipras claims how Varoufakis had his own agenda which included advancing Varoufakis's publications and testing out his own theories using Greece rather than truly advocating its financial survival.
He noted that those negotiations to avoid insolvency became “not just a method to secure a better deal for the country. They became an experiment, a monumental opportunity to prove the validity of his theories.”
Critical Negotiations
During volatile discussions, the country found itself dangerously close to leaving the eurozone.
On the line lay not only Greece's destiny and those severe cutbacks required in exchange for rescue loans from foreign lenders.
Failed Alternatives
Attempts to secure financing from other sources, including an urgent plea to Russia to purchase Greek government bonds, went unanswered.
Helping the indebted country was tantamount to tossing cash in the trash-can, Putin is reputed to have told Tsipras in Moscow.
Referendum and U-Turn
That summer, those excoriating bailout terms were put to a popular referendum, a move which plunged the EU into a further crisis of identity.
Although the vote was won decisively by those against the cuts, Tsipras had little option but to ignore the result and agree to a bailout package with foreign lenders that proved to be even harsher.
Breaking Point
Tsipras revealed how he began to doubt Varoufakis quite early on.
“He was the public image of the talks, the figure who drew media attention, who graced the covers of magazines the world over … he gave the impression he relished his new role.”
After the minister outlined a backup strategy that included creating a parallel currency and distributing coupons to pensioners, the leader said he realised that it was game over and asked him: “Are you serious?”
Lasting Criticism
Within the book, the author asserts how Varoufakis had proved himself “unsuitable for a deal that required complex and sensitive handling.”
Tsipras further claimed that Varoufakis's aggressive approach made him more and more alone with colleagues, put Greece at risk, and assisted hardliners who were pushing for a Greek exit from the euro.
This retelling of history has been met with fury and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet regarding these claims.
