In a freshly published autobiography, titled Ithaki, the former premier Alexis Tsipras spares no criticism while he examines that chaotic period during Greece's financial crisis.
A Controversial Appointment
According to Tsipras's recollections, Tsipras selected the maverick academic Varoufakis to be his finance minister mainly due to his international reputation and Varoufakis's highly compelling abilities as a public orator.
“In reality, he was, in reality, more of a star rather than an economic expert,” stated Tsipras.
Clashing Agendas
The former leader suggests that his finance chief had a personal motives that involved promoting Varoufakis's books and experimenting with his own theories using Greece instead of truly fighting for the country's financial survival.
Tsipras wrote how the negotiations to prevent insolvency became “not just a way to secure improved terms for the country. They became a test, a monumental opportunity to demonstrate the truth of Varoufakis's theories.”
High-Stakes Negotiations
During rollercoaster negotiations, Greece came perilously on the brink of exiting the eurozone.
At stake was both the country's future but also those harsh austerity measures demanded in exchange for financial aid from international creditors.
Unsuccessful Options
Attempts to secure financing elsewhere, such as an urgent plea to Russia to purchase Greek government bonds, were rejected.
Assisting Greece was tantamount to throwing money in the trash-can, Putin is reputed to have informed his Greek counterpart in Moscow.
Public Vote Followed by Reversal
That summer, the punitive conditions were subjected to a popular referendum, an action which plunged the EU into further crisis of identity.
Although the vote was carried decisively by those against austerity, Tsipras had little option to ignore the result then negotiate a rescue deal from foreign lenders which turned out to be even harsher.
Breaking Point
Tsipras claimed that he began to doubt his finance minister quite early on.
“Varoufakis was the face of the talks, the figure who attracted publicity, who graced the front pages of magazines the world over … it seemed he was enjoying the spotlight.”
When the minister outlined a backup strategy that included establishing a secondary currency as well as issuing vouchers to pensioners, the leader said he realised it was the end questioning Varoufakis: “Can you be serious?”
Lasting Rebuke
In the memoir, Tsipras asserts that his former ally demonstrated himself “unfit for an agreement demanding intricate and sensitive management.”
He also claimed that his confrontational style left him increasingly isolated among peers, endangered the country, while assisted hawks who were advocating a Greek exit from the euro.
This retelling of history has provoked anger along with shock in some quarters, while Varoufakis has maintained a conspicuous quiet on the matter.
