Within his freshly published autobiography, titled Ithaki, the ex- leader Alexis Tsipras pulls no punches while he examines the turbulent era during Greece's financial crisis.
A Controversial Choice
As per the ex-PM's account, he appointed the unorthodox economist Varoufakis as his finance minister primarily because of the latter's global profile and his very persuasive skills as a speaker.
“He was, actually, more like a star and less of an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader suggests that Varoufakis had a personal agenda which involved promoting his books as well as testing out his economic models using the nation instead of genuinely fighting for its financial survival.
Tsipras noted how the negotiations to prevent bankruptcy were “not just a method to secure a better deal for Greece. They became an experiment, an historic opportunity to prove the truth of his theories.”
High-Stakes Negotiations
Amid rollercoaster negotiations, the country came dangerously on the brink of leaving the single currency area.
On the line was both the country's future and the severe austerity policies demanded in exchange for bailout funds from international creditors.
Failed Alternatives
Efforts to find funds from other sources, including an urgent plea to Russia to buy Greek government bonds, fell on stony ground.
Helping the indebted country was tantamount to tossing cash into the garbage, the Russian leader reportedly told his Greek counterpart during their meeting.
Public Vote and U-Turn
That summer, those excoriating conditions were subjected to a public vote, a move that plunged the EU into a further existential crisis.
Even though the referendum was won resoundingly by voters against austerity, Tsipras had little option but to ignore the result and agree to a rescue deal with creditors that proved to be tougher.
Final Straw
Tsipras revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the public image of negotiation, the man who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis proposed a backup strategy that included establishing a parallel currency and issuing vouchers to retirees, Tsipras knew it was game over questioning Varoufakis: “Can you be serious?”
Lasting Criticism
Within the memoir, the author concludes how Varoufakis had proved himself “unfit for an agreement demanding intricate and sensitive handling.”
He further claimed how his aggressive style left him increasingly isolated with colleagues, put Greece at risk, and assisted hardliners that were pushing for Grexit.
This retelling of events has been met with fury and shock in some quarters, while Varoufakis has maintained a deafening silence on the matter.
