In a freshly published memoir, titled Ithaki, the former leader Alexis Tsipras pulls no punches as he examines that turbulent period of Greece's economic turmoil.
An Unconventional Appointment
According to the ex-PM's recollections, he chose the maverick academic Varoufakis as his finance minister largely because of the latter's worldwide fame along with Varoufakis's “extremely attractive” skills when it came to communicator.
“He was, truthfully, more of a personality rather than an economist,” recalled Tsipras.
Clashing Agendas
Tsipras suggests that Varoufakis had his own motives that included promoting his publications as well as experimenting with his economic models on Greece instead of truly advocating the country's economic stability.
He noted how those negotiations to avoid bankruptcy became “not just a way to secure a better deal for Greece. They became a test, an historic opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Talks
Amid tense negotiations, the country found itself dangerously close to leaving the single currency area.
On the line was not only Greece's future but also those harsh austerity policies demanded in return for rescue loans by international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent plea to the Kremlin to purchase Greek government bonds, were rejected.
Assisting the indebted country would be tantamount to tossing cash into the garbage, Putin reportedly informed Tsipras in Moscow.
Referendum Followed by Reversal
That summer, the punitive bailout terms were subjected to a popular referendum, an action that threw Europe into deeper crisis of identity.
Although the referendum was won resoundingly by voters who opposed austerity, the prime minister was forced to reject its outcome then negotiate a bailout package with creditors which proved to be tougher.
Breaking Point
Tsipras claimed how he began to doubt Varoufakis quite early on.
“Varoufakis was the public image of the talks, the figure who drew media attention, who appeared on the covers of magazines the world over … he gave the impression he was enjoying the spotlight.”
After the minister outlined a backup strategy that included creating a secondary currency and issuing coupons to pensioners, the leader knew that it was game over and asked Varoufakis: “Is this for real?”
Enduring Criticism
Within the book, Tsipras asserts that his former ally demonstrated himself to be “unsuitable for an agreement demanding complex and sensitive management.”
He further wrote that his confrontational approach left him increasingly isolated with colleagues, endangered the country, while assisted hawks that were advocating Grexit.
This account of events has provoked anger and shock in some quarters, while Varoufakis has so far maintained a conspicuous quiet on the matter.
