In a recently unveiled autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches while he reflects on the chaotic period during Greece's financial crisis.
An Unconventional Appointment
In the ex-PM's account, Tsipras chose that maverick economist Varoufakis to be his treasury head primarily due to his international reputation along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, actually, more like a celebrity and less of an economist,” wrote the 51-year-old.
Conflicting Agendas
The former leader alleges how his finance chief possessed his own motives that included promoting Varoufakis's books and experimenting with his own economic models using Greece instead of genuinely fighting for its economic stability.
Tsipras explained that those discussions to prevent bankruptcy were “not only a method to secure a better deal for Greece. They became a test, an historic opportunity to prove the truth of Varoufakis's ideas.”
High-Stakes Talks
During rollercoaster negotiations, the country came perilously close to exiting the single currency area.
On the line was both Greece's future but also the punishing austerity policies demanded in return for bailout funds from international creditors.
Unsuccessful Alternatives
Efforts to find funds elsewhere, including a desperate plea to the Kremlin to purchase Greek government bonds, fell on stony ground.
Helping the indebted country would be tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart during their meeting.
Public Vote Followed by U-Turn
That summer, those excoriating bailout terms were subjected to a popular referendum, a move that threw Europe into deeper existential crisis.
Even though the vote was won resoundingly by voters who opposed austerity, the prime minister had little option to ignore the result then agree to a rescue deal from foreign lenders which turned out to be more severe.
Final Straw
Tsipras revealed that he began to doubt his finance minister quite early on.
“He was the public image of the talks, the figure who attracted media attention, who appeared on the covers of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy involving creating a parallel currency as well as distributing vouchers to pensioners, Tsipras said he realised that it was the end questioning him: “Is this for real?”
Lasting Rebuke
Within the book, Tsipras asserts how Varoufakis had proved himself “unsuitable for a deal that required complex and delicate handling.”
Tsipras further wrote how his confrontational style made him increasingly isolated among peers, endangered the country, and assisted hardliners who were advocating Grexit.
The retelling of history has been met with fury and shock among certain groups, while Varoufakis has so far kept a deafening silence regarding these claims.
