Within his freshly published autobiography, called Ithaki, the former premier Alexis Tsipras pulls no punches as he revisits that turbulent era of Greece's debt drama.
An Unconventional Appointment
As per the ex-PM's recollections, he appointed the maverick academic Varoufakis as the treasury head largely due to the latter's worldwide fame along with Varoufakis's very persuasive skills when it came to speaker.
“He was, actually, more of a celebrity rather than an economic expert,” recalled Tsipras.
Conflicting Priorities
The former leader alleges how his finance chief possessed his own motives that involved promoting his books and experimenting with his economic models on the nation rather than genuinely fighting for the country's economic stability.
Tsipras explained that those negotiations to prevent bankruptcy became “not only a way to secure improved terms for the country. They became an experiment, an historic chance to prove the validity of Varoufakis's economic theories.”
High-Stakes Talks
Amid tense negotiations, Greece found itself dangerously close to leaving the eurozone.
At stake lay not only Greece's future and those punishing austerity measures demanded in return for bailout funds from foreign lenders.
Failed Options
Efforts to find financing elsewhere, including a desperate plea to Russia to purchase Greek bonds, fell on stony ground.
Helping the indebted country would be equivalent to throwing money in the trash-can, the Russian leader is reputed to have informed Tsipras during their meeting.
Public Vote and Reversal
That summer, the excoriating conditions were subjected to a public vote, an action that threw the EU into further crisis of identity.
Even though the referendum was won decisively by those who opposed the cuts, Tsipras had little option but to reject its outcome then negotiate a rescue deal with foreign lenders which turned out to be more severe.
Breaking Point
The ex-PM revealed that he started questioning Varoufakis quite early on.
“Varoufakis was the face of negotiation, the man who drew publicity, who appeared on the front pages of magazines globally … it seemed he relished his new role.”
After Varoufakis proposed a contingency plan involving establishing a secondary currency and issuing vouchers to retirees, Tsipras said he realised that it was game over questioning Varoufakis: “Can you be serious?”
Enduring Rebuke
In the book, Tsipras asserts that his former ally had proved himself to be “unfit for a deal that required complex and sensitive management.”
Tsipras also wrote how Varoufakis's confrontational style left him more and more alone with colleagues, endangered the country, and assisted hardliners that were advocating a Greek exit from the euro.
This account of history has provoked fury and shock among certain groups, while the former minister has so far kept a conspicuous quiet on the matter.
